Bitcoin Exchanges Soon to be Suspended in China
Following a recent ban on Initial Coin Offerings (ICO) in China, new rumors have been surfacing that domestic bitcoin exchanges are soon to be banned from operation within the country’s borders. Wall Street Journal sources claim that China is in the process of ordering the shutdown of these exchanges. The time frame for the shutdown is unknown, the process could be instant or stretch over many months.
Back in 2013, China banned Bitcoin from use in any bank or financial institution but didn’t take action on exchanges. These exchanges have made up roughly 45% of the global market share in the previous month. These rumors have caused the price of Bitcoin to drop to around $4100, a staggering low compared to recent highs. According to an anonymous source, China is worried that cryptocurrencies are causing too much disorder. This is definitely a possibility seeing as Chinese investors bought Bitcoin and bet against the Yuan last year. This is believed to be a threat to local currency that is not welcome by China’s totalitarian style of government.
The country’s three largest Bitcoin exchanges, OKCoin, BTC China, and Huobi, claim that they haven’t received any notices concerning bans on cryptocurrency trading. While the chinese exchange BTCC will put a halt to their trading on September 30th.
China making a move to ban exchanges isn’t a major threat to the global cryptocurrency market as a whole. Cryptocurrency will continued to be traded in exchanges outside of China. Their role in the market has been slowly diminishing due to the increase in strict regulations enacted by authorities. Chinese exchanges once accounted for 90% of the world’s Bitcoin transactions.