Beijing-based cryptocurrency is being commanded by Chinese authorities to stop trading and inform users of their closure as soon as signaling a widening crackdown by authorities on the industry to contain financial risks.
On 15th September 2017 China’s largest bitcoin exchange, announced it will suspend its local trading service at the end of this month, and today the country’s two other bigger exchanges, Huobi and OKCoin followed suit to say they will stop at the end of October. BTCC announced it would stop buying and selling on 30 September in response to strict regulation. It comes after authorities banned initial coin offerings on 5 September.
Chinese government intended to shut down bitcoin exchanges after banning ICOs the previous week. This writing was on the wall immediately after the Wall street Journal reported on Monday.
By September 20, 2025 platforms should also inform the government how they will allow users to make draw their money in a risk-free manner and operate funds to ensure that investors’ interests are rescued, as per the notice that was also reported by state newspaper Securities Times.
All trading exchanges must by midnight of Sept. 15 publish a notice to make clear when they will stop all cryptocurrency trading and announce a stop to new user registrations. – the government noticed.
The exchanges will no longer be permitted to ease the buying of crypto coins using Chinese Yuan and the trading of coins, they will continue to operate international-facing exchanges and other associated services. Smaller exchanges will be closing for some benefit. China government will shut up Yunbi on September,20.
The bitcoin price was down 5% at $3,071 at 1036 GMT on U.S. exchange Bitstamp. The bitcoin price index on trade website Coindesk came down below $3,000 for the first time in six weeks. Bitcoin slid by more than 10% on Wednesday after a warning by JPMorgan Chief Executive Jamie Dimon that it “is a fraud” and will eventually “blow up.”
It had merely made up losses
China is no more a dominant bitcoin trader as earlier. A continuous government bans especially a fourth month trading freeze due to security issues have seen its global let down of trading from more than 90% in the previous years to just over 10% today. Japan, Korea and the U.S. have rose to account for the lion’s share of global trading volumes, so the influence of this China ban is not as severe as it initially may seem.
Mr Dimon told an investor conference in New York that if any of his traders were found trading Bitcoin he would “fire them in a second”, and that Bitcoin was “worse than tulips bulbs”, pointing towards a famous market bubble from the 1600s.
Vlad Zamfir, a researcher at the Switzerland-based Ethereum Foundation told Reuters that it was no surprise China is moving against such currencies as Beijing has capital controls that are “in direct tension with the free ability to send any amount of money anywhere without any kind of delay.”
An expert in bitcoin at Westminster Business School, David Coker said it was surprising that Dimon attacked bitcoin as JP Morgan was working on its own cyrptocurrency called Quorum. “One can’t help but wonder if Mr Dimon’s comments regarding cryptocurrencies would apply to JP Morgan’s own offerings, should they come to market?” Coker said.