China's Oldest Cryptocurrency Exchange Shuts Down
BTCC, the oldest cryptocurrency exchange in China, has announced it’s shutting down all trading operations as of 12pm September 30th on it’s platform. Users will have until October 30th to withdraw funds from the exchange and each request will take 3 days to be completed.
“BTCChina has adhered to the implementation of a 100% reserve system from the first day of its establishment to ensure users of their assets’ security. Withdrawals (including RMB, Bitcoin, Litecoin, Ether etc.) will be completed within 72 hours of processing…”
This shutdown is in response to the recent crackdown on cryptocurrency exchanges by the PBoC (People’s Bank of China) requiring that companies halt CNY trading on all platforms big or small. BTCC is making an aggressive decision by completely shutting down the exchange portion of their platform before any future regulations are imposed. This shutdown has no current effect on the company's mining pool and other services. Huobi and OKCoin, the other two largest exchanges, are keeping their platforms open for crypto to crypto exchanges until further notice.
When financial regulators banned ICO’s, the primary method of raising capital for crypto, earlier this month, it was feared that the future of cryptocurrency in China was looking grim. With additional regulations on exchanges now being imposed it will be interesting to see the way all of it plays out. The length of the suspension is unknown although many people believe that it will be uplifted when the government comes out with strict regulations for cryptocurrency.
After the news of China cracking down on ICOs and bitcoin exchanges, the price of bitcoin fell from an all-time high of $4,956 to $2,945 over the course of a week. The entire market was hit as 50 Billion was erased from the total crypto market cap. However, uncertainty around China has faded as bitcoin is back above $4,000 and on an upward trend along with the rest of the market.
The loss of China in the global market won’t have much of an effect on the rest of the world. They have been an insignificant player in the game for awhile now as other countries have welcomed cryptocurrency with open arms.