(Yicai Global) May 31 -- Crypto exchange BitMart has followed Huobi in suspending services in the Chinese mainland after regulators moved to clamp down on digital currency mining and trading.

BitMart will stop contract trading services in the mainland, the Cayman Islands-registered company said in a statement today.

From June 3, users with a Chinese mobile phone number or Chinese account registration information will only be able to close their positions, and will not be able to transfer assets to their contract wallets. BitMart did not say whether spot trading by Chinese users will also be restricted.

Founded in 2017, BitMart serves 500 million users and has launched more than 300 digital currency assets, supporting spot and contract transactions, according to its official website.

Chinese regulators have been emphasizing the need to control digital currency risks, as big price swings and reports on the huge amount of power used in crypto mining have stoked concerns. On May 21, a committee under the State Council called for a crackdown on Bitcoin mining and trading.

It emerged earlier that Huobi had also suspended services in the Chinese mainland after a user revealed his chat history with its customer service department, according to financial media outlet Chinastarmarket.

China banned domestic digital currency exchanges in 2017, but the business entities represented by Huobi continued to operate and develop after they jumped overseas, and Chinese residents could still trade via the offshore exchanges.

Editor: Tom Litting