March 18 2018

China orders bitcoin exchanges to shut down

March 18 2018, 05:13 | Clarence Walton

China orders bitcoin exchanges to shut down

China orders bitcoin exchanges to shut down

According to the report, these platforms have until September 20 to inform the government on how they will facilitate users' withdrawals and handle funds to ensure that investors' interests are protected.

Chinese authorities have ordered Beijing-based cryptocurrency exchanges to cease trading and immediately notify users of their closure, signalling a widening crackdown by authorities on the industry to contain financial risks. Since the beginning of September, more than $75 billion has been wiped out, partly due to China, which was-recently rumored to be seeking a Bitcoin ban.

But despite the drop today, some Bitcoin traders remain unphased.

"First, anyone in China with a valid public key - a large numerical value that is used to encrypt data and is generated by a software program or provided by a designated authority - can still receive and sell Bitcoin", Coker said. "These are just road bumps as regulation and innovation need time to sync well with each other". Other crypto currencies are also in the red.

China accounts for 23 percent of all Bitcoin trades and houses some of the most successful Bitcoin miners.

Since the news has been released, bitcoin's price has dropped below the $3500 range. Glucksmann said much of the bitcoin community had been concerned about the increased level of scrutiny in China and had been moving their assets out of the country. People who are buying now are strong hands.

Why is the price of bitcoin falling?

Conservative wealth advisors said people should not get over-exposed to crypto-currencies because their prices can be very volatile.

Already having banned ICO financing and trading in ICO generated tokens, the halting of trading and transactions in renminbi is not surprising for the country which tightly controls its national currency.

Barring some e-commerce portals, not many merchants use bitcoins in daily operations.

That said, the two biggest Litecoin exchanges in China, OKCoin and Huobi, are still operating as if nothing ever happened.

Risk-off events often push the value of bitcoin higher. However, the idea of a state-run digital currency is under consideration.

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