China has recently announced plans to shut down national Bitcoin exchanges. It is not completely clear when the shutdown will take place and the whole process could take months. In response to these recent claims- Bitcoin prices have dropped to a low of $4,108.
China plays host to a number of cryptocurrencies as well as mining operations, for Bitcoin and Ethereum. During the past month, Bitfinex, OkCoin, and BTCC (all Chinese exchanges) added up to almost 50% of the global market, Bitcoin.org stated. Bitcoin gained huge popularity in China and their government seeing Bitcoin as a threat to its local currency may be the reason for coming ban. Particularly when we consider that Chinese users purchased bitcoin and started to bet against the yuan in 2016.
Anonymous sources tell that ‘too much disorder’ and other associated phrases have been sourced as the blame for the supposed shutdown. China has named the coins as an ‘illegal and unapproved form of public financing’.
Co-founder and CEO of BTCC Bobby Lee, however, is suspicious, regarding the so-called shutdown. Lee recently took to Twitter to post a poll, wondering whether his followers believed the shutdown to be true or false- over 80% believed it to be false. Just hours later, BTCC tweeted from its main handle, that the exchange was operating as it should be.
“‘Til now we haven’t informed by any authorities about closing BTC exchanges, if that happens we will show notifications on our website in no time. Even if that ‘s the case, we would be running offline trading for users, and your balance of coins in your account will be absolutely safe.” Replied OkCoin in an E-mail statement.
A similar event occurred in 2013 when China outlawed the cryptocurrency from all banks and economic corporations but left exchanges alone. The People’s Bank of China has not yet replied for comment, and no responses have been received by the main players in Chinese Bitcoin exchanges- Bitfinex, BTCC and Huobi.