Top China Bitcoin Exchange To Stop Trading

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Top China Bitcoin Exchange To Stop Trading

Earlier today, the Bitcoin price (BTC/USD) for the first time in six weeks fell below $3,000, posting double-digit percentage gains over the past 24 hours.

Cryptocurrency is a new market, and governments are still struggling to figure out how to regulate this new store of value.

Shanghai-based BTCChina, a major Chinese bitcoin exchange, said on Thursday it would stop all trading from September 30, citing tightening regulation, while smaller Chinese bitcoin exchanges ViaBTC, YoBTC and Yunbi on Friday also announced similar closures.

China's regulators plan to tighten the digital currency activities in China.

Following the announcement on ICOs on 5 September, two days the National Internet Finance Association, a state-backed body, fire a shot across the bows of virtual currency traders, saying that such currencies are being used as a tool for illegal fundraising and money laundering.

"It's worse than tulip bulbs", JPMorgan Chase CEO Jamie Dimon said Tuesday.

The a year ago has seen an astonishing boom in the two most popular cryptocurrencies: bitcoin and ether-the latter being the currency of the Ethereum network. The latest service closures will effectively put an end to the yuan-bitcoin exchange markets, once the world's largest driver of bitcoin trading volume. On Thursday, BTC China tweeted that it will cease operations at the end of the month as the Chinese government ramps up its crackdown on cryptocurrencies. Despite its halt to local trading, Shanghai-based BTCC, the world's oldest bitcoin exchange, said its other businesses, including an worldwide exchange and a bitcoin mining pool, remain unaffected.

On the plus side, with the Bitcoin bull market being thrown into reverse, the price of graphics cards should descend to normality.

China has been a hub for digital currency trading in recent years, but earlier this month, Chinese authorities banned intial coin offerings (ICOs), which allow companies to issue digital tokens in return for equity. Other crypto currencies are also in the red.

Prices of Ether, a blockchain currency that trades on the Etherium platform, plunged 13% to $240 and is down almost 40% from its peak at $393 on September 1.

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