Following stringent policies on cryptocurrencies, Kucoin has now followed other crypto exchanges to shut down its operations to users in mainland China.
Kucoin announced on October 3rd that users in mainland China will need to withdraw funds and close their accounts by the end of 2021 citing intense regulatory pressure from Chinese authorities.
According to the company’s announcement, Kucoin previously removed Chinese users from its platform when China first banned conversion of legal tender into cryptocurrencies and vice versa in 2017.
However, after conducting an internal review, the exchange still found some Chinese users lurking in the background. It noted:
“To protect the rights and interests of users, we strongly recommend that relevant users transfer their assets to other platforms before 24:00 (UTC+8) on December 31, 2021.”
Kucoin is the second large exchange to remove Chinese users following Houbi which announced the move on September 26.
On the other hand, large inflows in DeFi services and Decentralized Exchanges (DEXs) were seen after the crypto ban in China. Related stocks soared with DEX dYdX taking a large cut when looking at related searches.