The Bitcoin ban in China is taking on new proportions. Following the restrictions on Bitcoin mining centers and influence on search engine results, the crypto exchange Binance is no longer accessible for residents from China.
For several weeks now, exchanges like Binance have stopped showing up in search results on Chinese search engine Baidu. Now the Chinese government is going one step further and blocking access to the crypto exchange completely.
This means Binance can now only be accessed with the help of a VPN. This makes it more difficult for Chinese investors on the platform to manage their own holdings and make withdrawals if necessary. Unlike countries in Latin America, China is pursuing a tough strategy against cryptocurrencies. This includes shutting down mining centers as well as restrictions on crypto trading.
No more euro deposits possible via SEPA
While the restrictions in China are negatively impacting the crypto market, Binance is also struggling in Europe. For example, the world’s largest cryptocurrency by trading volume has stopped allowing payments in euros via SEPA for the time being. Deposits already made that have not yet been credited to the account will be paid out again within seven days.
In recent months, the authorities of various states intensified the observations of the crypto exchange. As a result, the authorities hope to regulate it to protect investors. Binance had also announced its intention to pay more attention to licenses and regulations in the respective states in the future.
Binance Coin (BNB) has slipped by around six percent in the last 24 hours and is now trading at $315. However, the drop is more due to the decline in the overall crypto market than the individual news regarding regulations in Europe and restrictions in China. The all-time high of around USD 690 had been reached on May 10, 2021.
Class action lawsuit against Binance from Switzerland and Italy
At the same time, Binance is currently awaiting a class action lawsuit from Italian and Swiss investors. The investors complain that the exchange was temporarily unavailable on some days. As a result, investors were unable to close their positions.
and therefore recorded high losses in some cases.
Binance had offered the affected users compensation. For this, the affected users first had to apply for the compensation. However, the investors were not satisfied with the amount. If a satisfactory offer is received from Binance by July 12, 2021, they would still refrain from the class action. The class action lawsuit is being initiated by the legal firm Lexia Avvocati. Whether the exchange will comply with the request is questionable.
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