China shuts down crypto exchange Token Better

China shuts down crypto exchange Token Better

By Benson Toti - min read

Netizens believe that something is amiss with the platform

The Singapore-based Token Better crypto exchange cannot be accessed by customers in China.

Customers of the platform tried accessing the exchange yesterday and found that they could not use the platform. In addition, the website could not be opened. The bemused users were also informed that they could not get back any of the funds that they had invested using the platform.

The platform’s last social media activity was on the 15th of October.

The executives that are in charge of the Token Better platform have allegedly been placed under investigation since mid-October. This meant that customers cannot withdraw their funds.

Discussions among netizens have been tense, as members of the crypto community believe that something is amiss. Colin Wu, a notable cryptocurrency enthusiast and journalist, suggests that the company is being blocked by China because the country sees it as a threat to the digital yuan.

As part of the efforts to ensure that the People’s Bank of China’s (PBC) central bank digital currency (CBDC)  will be properly adopted by the community, the country appears to be cracking down on a variety of cryptocurrency exchanges. After OKEx, the Singapore-based Token Better is the next exchange that has been blocked in the country.

“After OKEx and Huobi, another exchange from China, Token Better, was investigated by the police in Sichuan, China. Earlier, it claimed to have received an investment of $50 million in US dollars, but the probability is exaggerated”, Wu stated.

The OKEx crypto exchange had to suspend all withdrawal activity on the 16th of October, the same day as the Token Better platform, after the head of the company was taken into custody. Star Xu was suspected of criminal activity, and is currently under house arrest.

Since Xu is the sole key holder for the platform, OKEx is unable to conduct transactions. The private keys are often needed to facilitate, permit and conduct the flow of cryptocurrency.

The digital yuan is well into its testing phase, and has finished pilot tests on multiple cities around the country. The PBC now has plans to conduct another round of testing in the capital city of Beijing, and to supplement these efforts, a proposal has been made to construct a free trade zone dedicated to the research and development of cryptocurrencies as well as other related financial technologies within the city.