China is to ban local Bitcoin exchanges 11.09.2017

China is going to restrict and completely prohibit the trade in Bitcoin and altcoins on the domestic foreign exchange market. Thus, Beijing is hitting the $ 150 billion crypto currency market again, after banning the initial coin offer (ICO).

The information comes from Bloomberg with reference to sources who said that the ban on trade in crypto-currencies would concern only currency exchanges. However, over-the-counter operations will remain legal. The Chinese central bank has not yet commented on this information.

China accounts for 23% of Bitcoin traders worldwide, as well as the largest number of so-called "miners."

Zhou Shuoji, the founding partner at FBG Capital, a fund that invests in Bitcoin and altcoins, said that: “Trading volume would definitely shrink. Old users will definitely still trade, but the entry threshold for new users is now very high. This will definitely slow the development of cryptocurrencies in China.”

Earlier it was reported that China had banned operations with crypto-currencies, in particular, conducting ICOs. The authorities announced their intention to close relevant online platforms and crypto exchanges, and take the license of their owners. After the news, Bitcoin has fallen in price, having lost 7.2%.

At this point, the three largest Bitcoin exchanges in China – OKCoin, BTC China, and Huobi, said today that they hadn’t received any regulatory notices related to the ban. The mentioned exchanges operated crypto transactions today and were working in normal conditions.

Bloomberg is not the only media platform to discuss with insiders on this matter. The Wall Street Journal has also confirmed that the Chinese central bank, which regulates the securities and banking sector, along with other regulatory bodies are considering various strategies of action in the coming months regarding the domestic Bitcoin industry.

"There is too much chaos for the Chinese authorities," said an anonymous WSJ source.

At the moment of writing, Bitcoin price has lost 0.33 per cent to 4,218.