Chinese bitcoin exchange to stop trading, price plunges 16 percent

Chinese bitcoin exchange to stop trading, price plunges 16 percent

Chinese bitcoin exchange to stop trading, price plunges 16 percent

The government seems to be laying the groundwork to ban independent digital currencies from the Chinese economy altogether. Early this month, Chinese regulators declared initial coin offerings (ICO), or digital token sales, illegal and asked Bitcoin to end all fundraising activity.

Namibia's central bank recently issued a paper outlining its unfavorable view of cryptocurrencies. On September 14, BTCC, one of China's biggest exchanges, announced that it is halting trade in response to a notice from Chinese regulators.

Recent news from China has impacted the price of Bitcoin sending it on a downward spiral.

On U.S. exchange Bitstamp, it slid as much as 10 percent to a five-week low of $3,426.92, having hit a record high of almost $5,000 on September 2. The exchange said it was acting "in the spirit of" a central bank ban last week on initial coin offerings but gave no indication it received a direct order to close. Chinese Bitcoin exchange - BTCChina - said on Thursday that it would stop all trading from September 30.

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The new rules on message groups have delivered a rare setback for WeChat, which permeates the daily life of 963 million users and underpins Shenzhen-based Tencent Holdings Ltd's US$400 billion market valuation. In fact, leaked documents obtained by Reuters show that the Chinese government is ordering cryptocurrency exchanges to close. "Problems of this kind and offences conducted in previous operations will be extremely penalized", claimed the PBoC, highlighting out that the development of virtual currency contributions had gravely disturbed the financial segment and motivated speculation.

Digital currencies developed by authorities could be used for good with the right regulation, Li said. For those who believe in Bitcoin's long-term success, sudden drops in value present a potential buying opportunity. For example, four of the world's largest Bitcoin mining operations are based in China.

Bitcoin's meteoric summertime surge risks coming to a painful end as Chinese policy makers move to restrict trading amid growing warnings of a market bubble. All other accounts in banks and other non-bank payment service providers shall be canceled and reported to the Business Management Department of People's Bank of China.

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