China orders bitcoin exchanges to shut down

Posted September 15, 2017

This month, China announced a ban on ICOs based in the country, calling the events a "disruption" to financial order - an attitude seemingly reflected by the JPMorgan CEO.

According to some estimates the ICO market volume climbed to $150 billion (£133 billion). The bank banned initial offerings of new digital currencies last week.

China's bitcoin crackdown is wreaking havoc on the virtual currency. However, the original cryptocurrency has somewhat recovered since then and is now trading at $3,441, down a mere 1.5% from the same time yesterday.

This is the lowest Bitcoin's value has gotten in weeks.

Interestingly, the cryptocurrency market has actually picked up following the news.

"Digital tokens like bitcoin, ethereum that are stateless, do not have sovereign endorsement, a qualified issuing body or a country's trust, are not legal currencies and should not be spoken of as digital currencies", he said. Wang estimated that he'd lost 5 million yuan of real money. Beijing started early in 2017 to tighten the grip on bitcoin selling platforms by limiting payments.

"China is preparing to provide licensure for less than a handful of exchanges as it grapples with the meteoric increase in cryptocurrency trading, and speculation on ICOs - licensure and engagement with government will help propel this industry forward". It is also being speculated that other Chinese bitcoin exchanges too, will cease their operations by the end of September. The combined value of cryptocurrency, made up of more than 800 currencies, declined by $50 billion in the last week, according to CoinMarketCap. However, US regulators officially accepted Bitcoin as a currency in 2013.

The latest regulatory warnings produced a second mass exodus to p2p trading platforms such as Localbitcoins this year.

Hong Kong-listed PC Partner Group Ltd (柏能集團), which makes graphics cards used in bitcoin mining, has tumbled 27 percent since China's central bank declared initial coin offerings illegal earlier this month.

"China banned Google too, but its stock price had been going pretty well".

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Because of cryptocurrencies' popularity in China, regulators were prompted to crack down on them.