China Plans to Shut Down Bitcoin Exchanges

Bitcoins As Cryptocurrency Halts Decline After Drubbing on China's Offerings Ban

China Plans to Shut Down Bitcoin Exchanges

"This will definitely slow the development of cryptocurrencies in China".

Until now, about a ¼ of all Bitcoin trades were processed in China, but new legislation, if accepted, may change that situation.

A week before ago Central bank banned ICO, and now, Chinese news reports another tough decision from local authorities - to close cryptocurrency exchanges in China.

BTC China, the second-largest exchange, has responded to the crackdown with its own statement.

While Beijing's motivation for the exchange ban was not clear, according to commentators, it comes as China launches a broad clampdown on financial risk in the run-up to a key Communist Party leadership reshuffle next month.

"Trading volume would definitely shrink".

The ban will only hit cryptocurrency trading on exchanges, according to people familiar with the matter, who requested anonymity as the information is private, Bloomberg reported. Bitcoin has jumped about 600 percent in dollar terms over the past year, part of a broad surge in virtual currencies that has fueled concerns of a bubble.

China was once the world's largest Bitcoin marketplace, accounting for almost 90% of global trading.

"There has been a general tightening of the screws on regulating financial and monetary conditions", said Mr Mark McFarland, chief economist at Union Bancaire Privee.

Huobi, OKCoin and BTCC, the three leading bitcoin exchanges in China, have all stated that they do not believe the ban will be approved and are not even sure if it is the actual plan of PBoC. Immediately after the imposition of strict regulations and policies on bitcoin trading platforms in 2016, investors stopped trading bitcoin at a premium rate within the Chinese exchange market. The Chinese bitcoin exchanges have also confirmed that they have not received any such intimation from the authorities and this has helped the bitcoin prices to bounce again from the $4000 region for the second time in a week. China seems pretty determined to keep Bitcoin from gaining any more traction.

Coinmama lets you buy bitcoins with your credit card or cash.

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