China's Regulatory Crackdown Forces More Bitcoin Exchange Closures

China's Regulatory Crackdown Forces More Bitcoin Exchange Closures

China's Regulatory Crackdown Forces More Bitcoin Exchange Closures

The price of bitcoin has fallen 38% since the beginning of this month as Chinese authorities are tightening their grip on cryptocurrencies.

The price of bitcoin recovered as much as 10 percent after Huobi.com and OKCoin released statements, whipsawing traders who saw it it fell as much as 12 percent in earlier trading.

Bitcoin's meteoric summertime surge risks coming to a painful end as Chinese policy makers move to restrict trading amid growing warnings of a market bubble.

Oneof China's biggest bitcoin exchanges says it will end trading after news reports regulators have ordered all Chinese exchanges to close caused the price of the digital currency to plunge. Just over a week after bitcoin hit a fresh all-time high of almost $5,000, the two bits of news from China have prompted a two-stage wave of price declines.

Then on Wednesday this week, the state-backed National Internet Finance Association issued a warning that virtual currencies are increasingly being used as a tool for illegal fundraising and money laundering.

Bitcoin Dives on Dimon's Fraud Warning
China's Regulatory Crackdown Forces More Bitcoin Exchange Closures

The a year ago has seen an astonishing boom in the two most popular cryptocurrencies: bitcoin and ether-the latter being the currency of the Ethereum network. The contributions, which had grown with the increase of the other crypto-currencies including bitcoin, are barred and should stop with immediate effect, the People's Bank of China claimed to the media this week. Accordingly, the ICO boom pumped up the price of Bitcoin and Ethereum. This appears to be only part of a major crackdown on cryptocurrencies in China as it had earlier banned initial coin offerings (ICO's) by which some were raising funds to launch new currencies. Do keep in mind this suspension of Bitcoin trading at the BTCC exchange doesn't affect Bitcoin as a protocol or currency.

On October 31, in turn, we will gradually stop all the digital asset exchange operations associated with the RMB trading business.

Regulators around the world are in the midst of working out how to address some of the risks around virtual currencies.

Just a day after JPMorgan Chase CEO Jamie Dimon unleashed a fury of attacks on Bitcoin (and cryptocurrencies in general), another salvo is incoming.

Related news