As China cracks down on cryptocurrency exchanges, two things come to mind. One is the upcoming Central Bank Digital Currency, DCEP. The other is the recent hacks and suspected fraudulent activities on the exchange. Part of the recent happens is that large bitcoin transfers are reportedly moving from Huobi to Binance.
As published by CryptoQuant, the volume of transfer from Huobi to Binance reached an all-time high of $300M, 16000 Bitcoin between November 2 and November 11. The exodus could be linked to the alleged sudden disappearance of Huobi chief operating officer, Robin Zhu.
As noted by Colin Wu, a Chinese crypto reporter while speaking to COindesk, “A lot of users went to Binance because Chinese users are more familiar with Binance and Binance’s executives are all overseas,”
Why Binance by the way? Binance CEO, CZ always maintained that the exchange is decentralized and as such the location wasn’t China or anywhere.
In a separate interview, Felix Wang, managing director, and partner at financial investment research firm Hedgeye affirmed that;
“[China] doesn’t want digital [renminbi] products to be disruptive to what’s already in the financial system,” he went forward to agree that “The government wants to encourage innovation and development. They only want to crack down on products that they think are misleading to the public”