How to ensure asset security when exchanges are clearing out mainland users?

Since September 24, 2021, when ten ministries and commissions including the National Development and Reform Commission, the Ministry of Finance, the People's Bank of China, the State Administration of Taxation, and the China Banking and Insurance Regulatory Commission jointly issued the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation", major cryptocurrency trading platforms represented by Huobi have successively issued announcements stating that they will orderly clear out existing mainland users on the platform and stop registering new mainland users. For users, what issues should they pay attention to during the clearing period? How to ensure the safety of assets?

" Leading platforms, represented by Huobi, have begun to gradually withdraw from domestic businesses "

After the withdrawal wave of mainland users hit, Huobi issued three withdrawal announcements on September 26, October 2, and November 26, respectively, and became one of the platforms with the fastest progress and greatest determination in withdrawing mainland users.

Huobi’s announcement on September 26 clarified the existing users and the deadline for liquidation. As early as September 24, 2021, Huobi Global has stopped registering new users in mainland China. For existing users whose identities are authenticated as being in mainland China, it is planned to complete the orderly liquidation before 24:00 on December 31, 2021, while ensuring the safety of user assets.

The announcement on October 2 clarified the process and time for clearing out existing users in mainland China in terms of coin-to-coin and OTC transactions. It stated that the coin deposit function for users in mainland China will be closed on December 14, and coin-to-coin transactions for users in mainland China will be prohibited on December 15. The orders of users in mainland China will be cancelled (the withdrawal function will remain open, and users in other non-restricted countries and regions will not be affected). OTC CNY transactions will also be removed from the shelves at 24:00 on December 31.

In the announcement on November 26, the deadline for stopping the airdrop service for users in mainland China was further clarified. The announcement shows that from October 30, new airdrop asset snapshot services will no longer be provided to users in mainland China, and only NFT, ALGO, WOO, and SGB airdrop projects will be processed. From December 31, no asset airdrop services will be provided to users in mainland China. After that, the airdrop income generated by assets that users in mainland China have not yet claimed will be converted into legal currency or stablecoins by Huobi Charity for charitable donations.

In addition, as Huobi takes the lead in completely clearing out mainland Chinese users and withdrawing from the Chinese market, Huobi users have now received prompts from Huobi to withdraw their coins through email, text messages and other channels. When logging into Huobi, there will be a pop-up window with a withdrawal reminder, and users are forced to watch the pop-up notification for 5 seconds so that all mainland Chinese users who are using Huobi can see the notification reminder.

Therefore, for mainland users, we have now entered the core liquidation period. For platforms such as Huobi that have a more obvious liquidation attitude, investors should also withdraw their assets from the platform as soon as possible.

「   Withdrawing money as soon as possible is the best way to ensure the safety of assets "

At this stage, as major platforms gradually withdraw mainland users, liquidity within trading platforms will be further lost. From a macro perspective, the recent sharp drop in the cryptocurrency market has further caused the outflow of funds from trading platforms and may lead to a decline in the overall trading volume of trading platforms.

Small-cap currencies have always been the main high-quality projects of many platforms. Of course, in the context of the overall prosperity of the market, many small-cap assets can bring unexpected returns to investors. However, due to the withdrawal of mainland users and the overall decline of the market, many small-cap currencies have experienced a large decline, and the overall sluggish trading volume has led to poor liquidity, and there are still large price differences between various trading platforms.

At the same time, for many small-cap currencies, there is also the possibility of being "highly controlled", experiencing sharp rises and falls, becoming "stand-alone currencies", and there is a risk of returning to zero on the platform after a sharp rise. This situation may become more serious the closer to the deadline for complete withdrawal. Therefore, before the complete withdrawal, it is the best choice to integrate such assets and trade them into mainstream assets. When the trading depth is insufficient, it is the best choice to first propose assets to seek further trading opportunities, and beware of asset losses caused by the "stand-alone currency" market.

In addition to small-cap currencies, mainland users should also withdraw some mainstream assets from trading platforms as soon as possible to avoid asset losses due to platform changes at the last minute.

It is worth noting that Huobi will ban the currency-to-currency transactions of users from mainland China from December 15, and the orders of users from mainland China will be cancelled, which means that Huobi will face the dual test of market factors and changes in liquidity on the site from December 15, which will invisibly increase the difficulty of transactions and market risks. So overall, in such a turbulent liquidation period, some "small-cap currencies" and "stand-alone currencies" should be sold and transferred, and the mainstream assets stored in the liquidation exchanges should be withdrawn as soon as possible.

Of course, there are also many fraud gangs that intentionally mislead users of some platforms during the liquidation period, such as sending fake domain names in the form of text messages, asking users to withdraw assets to the "platform" or log in to the domain name in order to achieve the purpose of fraud, etc. When logging into the trading platform, users also need to identify the authenticity of the platform domain name to prevent asset losses.

「   When liquidation is in progress, how can assets be safely withdrawn from the trading platform? "

Liquidation is in progress. How can we safely withdraw assets from the trading platform? Here we take Huobi as an example to explain:

Web:

1. Log in to Huobi Global official website https://www.huobi.com/zh-cn/ (alternative domain name: https://www.huobi.mp/zh-cn/), click [Assets] in the upper right corner, and select [Coin Account (Deposit & Withdrawal)] in the drop-down bar.

2. Enter the coin account page and click the [Withdraw] button in the upper right corner.

3. Enter the withdrawal page. In the first step, select the currency to withdraw. You can check your available balance and withdrawal amount below. In the second step, fill in the withdrawal address and select the withdrawal network (Note: Please make sure to withdraw money in a safe environment of computer and browser, and make sure your withdrawal address is accurate).

4. Enter the withdrawal amount, click the [Withdraw] button to confirm the withdrawal information and complete the security verification, and finally wait patiently for the assets to arrive.

App:

1. Log in to the Huobi Pro App, select Assets in the lower right corner of the homepage, and then click the Withdraw button at the top of the page.

2. Enter the cryptocurrency page. You can see all the currencies that can be withdrawn from your personal account at the bottom of the page. You can also [Search for Currency] at the top of the page, confirm the currency and click it to jump to the withdrawal page.

3. After entering the withdrawal page, select the currency type in turn, fill in the withdrawal address (note: please make sure your withdrawal address is accurate), select the withdrawal network, enter the withdrawal amount, and finally click the [Withdraw] button to confirm the withdrawal information and complete the security verification, and wait patiently for the assets to arrive.

In general, the withdrawal of mainland users has become an unstoppable trend. With the arrival of the withdrawal deadline of major trading platforms represented by Huobi, it is the wisest choice to withdraw assets from the trading platform as soon as possible. Of course, as mentioned above, users should also be careful to prevent fraudulent activities in the name of withdrawal during this period.