Chinese bitcoin exchanges closing down
September 19, 2017 Category Finance, Weekly
One of the biggest Bitcoin exchanges in China and the world announced that it would stop all trading at the end of this month, following new Chinese government regulations clamping down on crypto-currencies, and its ban on initial coin offerings (ICO). BTCC – China’s No. 2 Bitcoin platform by volume and the world’s third-largest – said that “after carefully considering” the announcement by Chinese regulators, it will “stop all trading” on September 30. It has already stopped registering new users, but foreigners can still use its services in overseas markets, Shanghai-based BTCC said in a statement.
Bitcoin exchanges OKCoin and Huobi issued statements saying they would shutdown all trading between bitcoin and the yuan by October 31. At least 20 smaller exchanges in China followed suit. Besides Bitcoin, other crypto-currencies, such as Litecoin and Ethereum, are also affected.
The National Internet Finance Association of China said that there was “no legal basis for platforms which engage in the trading of various forms of ‘virtual currencies.’” The Association, which was created by the People’s Bank of China (PBOC), warned on its website that such currencies are “increasingly used as a tool in criminal activities such as money laundering, drug trafficking, smuggling and illegal fundraising.” The Bitcoin’s price crashed from a high of around USD4,359 to below USD3,000 before recovering.
Jiang Yang, Vice Chairman of the China Securities Regulatory Commission (CSRC), said at a forum in Beijing that China should be more cautious on innovation in the finance industry to prevent fiscal and systematic risks.
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