Binance will stop trading cryptocurrencies in Chinese yuan. Here's your answer.

The exchange had previously blocked new registrations from mainland China after the country's central bankdeclared cryptocurrency transactions illegal
The world's largest cryptocurrency exchange said:that it will stop allowing Chinese currency trading on its consumer-to-consumer exchange platform, weeks after China took its strongest move yet against the use of digital assets.

Binance, which was founded in 2017 andoriginally based in China, said Wednesday that after this year it will ditch the ability to buy or sell cryptocurrencies using the yuan in peer-to-peer trading. From now on, all users who happen to be based in mainland China will only be allowed to withdraw or close their positions, the exchange added.

Last month, China's central bank announcedall transactions related to cryptocurrency are illegal and singled out overseas exchanges, stating that it is illegal for such offshore platforms to provide services over the Internet to residents of China.

China has banned cryptocurrency exchanges from working inwithin its borders in 2017 and recently moved to contain crypto-related activities by ordering financial firms to play a more active role in eliminating transactions and ousting cryptocurrency mining operations from the country.

But individuals in the country continue to findways to trade bitcoins and other digital currencies using OTC or peer-to-peer transactions. Many Chinese users have been able to access offshore exchanges using VPNs. Beijing's latest ban on crypto transactions and services offered by foreign exchanges targets these loopholes.

Binance Says People In China Can'taccess her website directly from 2017. After the new rules were announced, the company said it began blocking account registrations using Chinese mobile phone numbers.

Binance is working with policymakers around the world to develop regulations that will allow the cryptocurrency industry to grow, an exchange spokesman said Wednesday.

Huobi, a rival crypto exchange that was also based in China, said last month that it will close all user accounts in mainland China by the end of the year.

Bitcoin was around $ 55,191 by the end of the day in Hong Kong on Wednesday, down 4.2% in the past 24 hours, according to CoinDesk.