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Li Xiaolai: Yunbi Is Winding Down In 3 Months

A Shenzhen-based exchange has delisted BTC and ETH trading pairs against CNY. The exchange is the second one. The latest report of Caixin Weekly this afternoon also revealed that “Yunbi is winding down in 3 months” according to Li Xiaolai, the Bitcoin tycoon in China.

Zhgtrade, a Shenzhen-based altcoin exchange, announced that the exchange would delist BTC/CNY and ETH/CNY trade pairs on 10 September. In addition, the statement said:

“As per the regulatory requirement, Zhgtrade will stop most trading pairs gradually. Please withdraw your CNY and digital assets.”

Prior to the statement, the exchange, which was founded in 2015, has also suspended new user registration and CNY deposit on 9 September .
This is the 2nd exchange that basically shut down  operation. The first one is guojiaowang, one of the six Beijing-based exchanges. These two exchanges are more or less involved in the “ICO” frenzy in China.
In fact, most exchanges and ICO platform announced refunding procedures for “ICO” coins after delisting of ICO-ed coins.
So far, Huobi, OKCoin, Btc38 and Viabtc are the exchanges that are not connected with “ICO” coins. But that doesn’t provide them shelter from regulatory storm.

In response to a report from Caixin, Huobi, OKCoin and BTCChina release almost identical reponses. Take BTCC’s reply for example:

1. So far, we haven’t received order from regulatory authorities and not in a position to confirm the authenticity of the news.
2. As a company based in China, BTCC’s basic principle is to comply with local regulatory policy. If the report is true, we will firmly support the policy and protect the customer’s asset security.
3. The report mentions that Bitcoin is not considered as illegal by the authority and p2p trading between users are not banned. If the report is true, BTCC will stop current BTC/CNY trading and transform into a p2p trading platform for digital assets.

The response leaves a opening for transforming into an OTC exchange, which is specifically mentioned as “not restricted” by regulatory report.

But the danger of total shutdown is looming until later this afternoon. According to the latest  report by Caixin, Li Xiaolai, who owns 25% share of Yunbi, told Caixin reporter that:


“Yunbi is winding down in 3 months”

With the ride of ICO, Yunbi once took the first place in terms of trading volume in the world. If Yunbi and other exchanges are to shut down, CNY liquidity supply is bound to shrink. Although BTC trading might still be conducted via localbitcoins,  OTC exchange for ERC-20 tokens is still absent in the market.

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