Coming every Sunday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
Heads were turned this week when reports suggested that Binance and Bithumb, two major crypto exchanges, have closed their offices in Shanghai following raids by Chinese police. However, not everything is as it seems, with both companies claiming that the rumors aren’t true. Binance has said such a police operation would actually be impossible because it doesn’t have offices in the city, while Bithumb insisted that its Shanghai team is continuing to operate “steadily without pause.” A spokesperson for Binance told Cointelegraph that the company has been subject to a spate of negative articles in the Chinese media — and urged journalists to check whether their sources are telling the truth. On Saturday, CEO Changpeng Zhao (CZ for short) went one further and vowed to sue The Block, accusing the industry media outlet of false reporting.
Despite the robust denials from Binance and Bithumb, China is keeping a watchful eye on crypto exchanges that are operating illegally in the city of Shenzhen. Authorities there have reportedly identified 39 platforms that have fallen afoul of the country’s trading ban — however, it’s unclear what consequences these businesses would face. Some analysts have claimed this crackdown will mainly focus on Ponzi schemes and crypto frauds, with PrimitiveCrypto founding partner Dovey Wan claiming that Shenzhen has become a “hub” for such companies. Indeed, CZ has actually welcomed China’s stance, telling Wan: “This is actually a very good thing to happen, cleaning up the industry of scammers and fraudsters.”