After Beijing's blanket ban on cryptocurrency transactions, Binance is shutting down peer-to-peer yuan trading, thus closing one of the final workarounds for Chinese users.

On December 31, the world's largest crypto exchange will end yuan-dominated trades on its over-the-counter platform. Users located in mainland China will only be permitted to withdraw funds from the platform.

Binance has joined a host of other crypto companies in announcing plans to depart China entirely after regulators banned all crypto services and transactions in September. Huobi, a rival exchange, has said that existing users based in the country will be removed by the end of the year.

Binance Makes Regulatory Compliance Top Priority as the Crypto Exchange Pivots Into Financial Services Company – Exchanges Bitcoin News

After exiting the mainland China market in 2017, Binance created a peer-to-peer platform in 2019 that allows users to trade Bitcoin, Ether, and Tether against the Chinese currency. That same year, it made its first strategic investment in China, participating in a financing round valued at around $200 million for crypto-data site Mars Finance. 

Since early this year, Chinese authorities have been leading a major crackdown on cryptocurrency. The country has long discouraged citizens from using or investing in cryptocurrency, but in mid-2021, it began to drive out miners.

Beijing's latest crypto ban has effectively put an end to any chances of exchanges and other platforms remaining in the country. The central bank published rules on September 24 that prohibited all cryptocurrency transactions in China, including services supplied by offshore exchanges. They also make it illegal for foreign platforms to hire locals for jobs in marketing, technology, and payment.