Regulatory Policies Brewing! Chinese investors panic sell, USDT to RMB briefly drops below 6.

Chinese Vice Premier and Director of the Financial Stability and Development Committee of the State Council, Liu He, announced during the 51st meeting of the State Council's Financial Stability and Development Committee yesterday that they will resolutely prevent and control financial risks and "crack down on bitcoin mining and trading activities, firmly preventing individual risks from spreading to the social sector," causing another heavy blow to the already fragile cryptocurrency market and triggering a large-scale exodus of Chinese investors.

Chinese Investors in Panic

Although this is not the first time China has explicitly cracked down on cryptocurrency and mining activities, many investors are still irrationally panicking due to concerns. Under normal circumstances, the exchange rate between USDT stablecoin and Chinese Yuan in the OTC market of exchanges is usually around 6.5 to 6.7. However, after the regulatory news from the Chinese government was released yesterday, many Chinese investors entered a panic selling atmosphere, causing the USDT to Chinese Yuan exchange rate on Binance to drop below 6. This indicates the urgency of Chinese investors exiting the market.

Escalation of Chinese Policies

In fact, after the announcement of the news yesterday, both OKEx and Huobi exchanges seemed to have taken some actions. It is said that the fiat currency deposit and withdrawal procedures on both exchanges have become more cumbersome, and there are even screenshots posted by Chinese netizens indicating that Huobi has suspended contract trading services for Chinese users.

Even decentralized exchanges seem unable to escape Chinese regulation. It is reported that the Chinese firewall has blocked access to Uniswap, preventing Chinese users from visiting the website.

As for Bitcoin's hash rate, since most data platforms only report data until noon on May 21, the impact of Chinese policies on Bitcoin's hash rate is yet to be determined and will continue to be monitored in subsequent updates.