Bitcoin continued to tumble Thursday, trading down 6.6% to $3,634.82 per dollar at 8:13 a.m. ET, after Chinese media reported that the country’s regulators were moving closer to shutting down exchanges.Reports from Bloomberg and The Wall Street Journal on Monday first indicated that China planned to ban trading of bitcoin and other virtual currencies on its exchanges.
Bobby Lee, CEO of the bitcoin exchange BTCChina, tweeted Thursday that the firm would stop all trading on September 30 following China’s ban on initial coin offerings, the cryptocurrency-based fundraising method.
According to Bloomberg, China Business News reported that the city of Shanghai had ordered the closure of bitcoin trading platforms. The website Crypto Coins News further cited a local newsletter that said banning bitcoin exchanges was “certain.”
Bitcoin has come under pressure in recent weeks following negative headlines out of the UK and China.
On Tuesday, the Financial Conduct Authority, a UK watchdog, warned investors about the risk associated with ICOs.
Also, rumors that China may ban cryptocurrency trading altogether have escalated; a Caixin report out Friday suggested that China would shut down its domestic exchanges.
Earlier this week, JPMorgan CEO Jamie Dimon said it was a “fraud” that would eventually blow up.
The cryptocurrency has plunged about 25% since its September 1 high. But it’s still up nearly 300% this year.
After carefully considering the announcement published by Chinese regulators on 09/04, BTCChina Exchange will stop all trading on 09/30 — BTCC (@YourBTCC) September 14, 2017
The shutdown only affects Chinese traders, leaving international exchange operations to continue as usual. This morning, BTCC tweeted that it had decided to halt trading on its BTCChina Exchange. A more explanatory statement was posted on a Chinese social media site by an official of the exchange. The translation of the statement indicates that BTCC will heed the spirit of a September 4 issuance by the “People’s Bank of China Central Office of the Ministry of Industry and Information Technology Ministry of Industry and Commerce, China Banking Regulatory Commission, China Securities Regulatory Commission on the prevention and treatment of the risk of issuing currency,” and will stop the registration of new users on the China-based digital asset platform, effective immediately.
1/ After carefully considering the announcement published by Chinese regulators on 09/04, BTCChina Exchange will stop all trading on 09/30.— BTCC (@YourBTCC) September 14, 2017
BTCC also said that on “September 30, 2017, Digital asset trading platform will stop all trading business,” adding that the measure would not affect Beitou China’s pool. Although BTCC is shutting down China-side exchange operations, it should be noted that there has yet to be any further announcements from regulatory officials in China since the People’s Bank of China released a statement on token offerings.
Providing additional background, cnLedger tweeted that BTCC had listed a token called ico-coin on its platform which likely would have caused Chinese regulators to scrutinize the exchange, given its explicit purpose for token offering-based crowdfunding. Other exchanges, according to cnLedger, are not shutting down:
Source: blockfrontier.com
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