Bitcoin Ban in China is Now Certain; Bitcoin Exchanges To Shutdown Operations
China puts the final nail in the coffin with some Chinese regulators reportedly stating that the Bitcoin ban is now “certain” in the country. In a major crackdown on all the existing exchanges, the National Internet Finance Association (NIFA) in China had yesterday issued a serious warning and said that none of them had been legally established.
Now, a recently published newsletter by Zero One Finance, a member of NIFA, states that regulators in China have “asked the major currency exchanges to close the program” and have made it very clear that “Banning Bitcoin exchange is certain”.
Major Chinese Exchange BTCC Confirms Shutdown till 30th of September, But NOT Others
The ripples of such a major jolt from the official announcement by the Chinese regulators were quick to spread. BTCC, one of the top three exchanges for Bitcoin trading in China was quick to announce in a tweet that it will stop any further trading till the 30th of September.
However, BTCC has confirmed that its other operations like the BTCC would continue. Earlier this year, an official from the People’s Bank of China has started auditing and on-site inspection of all the Chinese Bitcoin Exchanges. The official then had asked BTCC to comply with the regulations and work in a similar direction ahead.
However, the other two leading and largest Chinese exchanges, Huobi and OKCoin, are carrying forward their operations very normally. CnLedger, a Chinese cryptocurrency news source has confirmed that while having a word with Huobi and OKcoin, the representatives said that unlike BTCC they have not received any directives from the Chinese regulators to shutdown their operations. CnLedger writes:
“Also note that BTCC previously listed ICO-Coin, a token specifically used to raise funds in ICO projects, issued by co-founder Yang. OKCoin and Huobi said they have not received notice from regulators and are operating normally.”
Cryptocurrency Analysts Say ‘Not a Matter of Much Concern’
Following all the recent panic and volatility in the Bitcoin market and properly analysing the situation of the ground, noted financial analyst Max Keiser expressed his views saying that the current instability in the Chinese Bitcoin markets is, in fact, more likely to drive the attention of traders towards Japanese markets. One of the key reasons to this is certainly the fact that Japan has legalised the use of Bitcoin in the country on April 1, this year.
Another well-known Bitcoin researcher and investor, WhalePanda has said that just a volatility could be momentary and is less likely to last for long. WhalePanda emphasis on the fact that the trading volumes in Chinese Bitcoin exchanges are comparatively very low in comparison to other global exchanges. WhalePanda wrote:
“Hey guys, bitcoin trading might be banned in China, but we just realized that there is way more volume in other countries. Thanks for the dip.”
Bitcoin Price crashes to a 30-day low below $3500
Owing to all the speculations and announcements coming from China, the Bitcoin price crashed to a 30-day low below $3500 as the markets saw a major sell-off. The panic caused by all the announcements have pushed investors to withdraw its money and it seems that it might take some more time for the dust to completely settle down before any next up move.
The Bitcoin prices dropped to $3200. With decreasing Bitcoin prices, the price of altcoins also fell drastically. Major sell-off was witnessed in the whole cryptocurrency market and as a result the cryptocurrency market cap fell to $118 Billion.Last week when China banned ICO, the cryptocurrency market cap dropped $20 Billion from $170 Billion.
At the time of publishing this article, Bitcoin price was around $3400. In India markets, Bitcoin price was INR 2,30,000.
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