China orders all Bitcoin exchanges to close, report says

Casey Dawson
September 17, 2017

The worldwide value of Bitcoin has plunged in recent days amid speculation that the Chinese authorities will shut down the trading platforms following last week's ban on initial coin offerings. Beijing started early in 2017 to tighten the grip on bitcoin selling platforms by limiting payments.

According to leaked documents and a series of statements from those running the local exchanges, China's regulators have told the exchanges verbally that they do not have a license to operate and must shut down immediately.

But thanks to this more diversified market, and in context, still limited action, it stands to reason that the regulatory interventions of a single country (even the world's most populous country) should have less impact on the bitcoin price over the long term. Currencies like Bitcoin continue to be hard pressed to present as legitimate alternative monies when their value changes within hours.

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The plan was distributed by a People's Bank of China-led group overseeing Internet finance risks, said the people, who asked not to be named. The Bitcoin-to-US dollar exchange rate fell to a bottom of $2,980 from $4,690, and then recovered to $3,650. Before the ban, China was the largest trading location for the popular but controversial cryptocurrency. They gave no other details.

The announcement of BTC China left investors scrambling to get their money out before it's too late, which kicked off a rapid plummet of the value of Bitcoin. However, the only businesses affected are those relating to Btcchina; other Btcc businesses are unaffected as "Btcc is a separate company from Btcchina", the company noted, adding that "Btcc Pool, Btcc USD Exchange, Btcc Dax, Btcc Mobi, & Btcc Mint are not affected by this change". Between 17 and 23 percent of all bitcoins traded for any fiat currency have been traded for CNY. As for exchanges' prices, Bitcoin is trading at about $2904.64 on OkCoin, $2887.97 - on Huobi, and $2908.37 - on BTCC at press time.

Need to calculate your bitcoin holdings? It has yet to be revealed how they plan to legally acquire yuan in the future. A series of government bans - most recently a four-month trading freeze due to security concerns - have seen its share of global trading drop from more than 90 percent in previous years to just over 10 percent today. The good news, however small, caused a surge in buying of all cryptocurrencies with CoinMarketCap reporting double-figure hourly gains across the many assets and tokens amongst the top 100.

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