Amidst tightening regulations on cryptocurrency within China, Hong Kong-based cryptocurrency exchange OKEx has announced that it will no longer be allowing withdrawals by unverified users. Along with its partner platforms, the OKEx exchange will be introducing daily withdrawal limits based on a tiered verification KYC (know your customer) system. The new verification protocols are scheduled to be implemented on August 28th. The withdrawal limits are as follows:
- Unverified accounts: 0 BTC
- KYC level 1 accounts: 2 BTC every 24 hours
- KYC level 2 and 3 accounts: 100 BTC every 24 hours (may increase according to the user’s trading volumes)
Following the new regulations users will also be limited to the use of only one account.
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China’s Cryptocurrency Crackdown
China first banned Bitcoin trading in renminbi (RMB) in 2017. Reports from last month from the People’s Bank of China revealed that Bitcoin trading in Chinese currency had dropped below 1 percent of the world’s trading totals. The Chinese Bitcoin ban was quickly followed by a ban on ICOs, leading 88 China-based exchanges and numerous Chinese ICO projects to relocate. The bans were considered to be a tremendous blow to the developing market.
More recently, the Chinese government announced that that social media accounts for crypto news organizations would be closed from access within the country. Additional bans have been placed against hotels from hosting crypto-related events.
Meanwhile, China is also receiving pressure from the federal government in Moscow to introduce criminal liability for shadowy circulation of cryptocurrency.
Interestingly, China’s tightening regulations prove to be in direct contrast with growing trends in the south-east Asian marketplace for greater adoption of cryptocurrency. New reports from the Philippines, Thailand and South Korea reveal that governing bodies are actively working to develop cryptocurrency hubs in dedicated sections of their respective countries. China, however, seems unmoved by potential global pressure for cryptocurrency adoption in competing international markets.
OKEx currently ranks as the second-largest cryptocurrency exchange by daily trade volume. The company has begun to expand its business beyond China in recent months. In April, the exchange announced plans to expand operations into Malta, aka ‘blockchain island‘. This was followed by an announcement in August that OKEx had launched a new white-label solution division called Coinall Businesses. The new platform is designed to offer a new clearing system, cold and hot storage services, and applicable anti-money laundering and KYC procedures to OKEx customers. According to Bitcoin.com, Coinnall is advertised as being the first “autonomous, community-run crypto trading platform”.