Has Winter come to Bitcoin with exchange closures in China ?

China's Regulatory Crackdown Forces More Bitcoin Exchange Closures

Has Winter come to Bitcoin with exchange closures in China ?

Prior to that, one of China's largest cryptocurrency exchanges, BTCChina, said it would stop trading on 30 September following an order it had received from the authorities.

The news has caused the value of Bitcoin to plunge by more than one-third, falling from $3,860 to $2,457 as the news broke.

A top industry regulator echoed worries about the unregulated market.

The price also came under pressure after JP Morgan boss Jamie Dimon called bitcoin a fraud, and promised to fire staff dealing the digital money for being "stupid" and "dangerous".

But foreigners can still use its services in overseas markets, Shanghai-based BTCC said in a statement. The cryptocurrency has slumped about 40 percent since it reached its all-time high of over $5000 earlier this month.

Exchanges shall save all user trading and holding data, and send it to local authorities immediately in DVDs.

Fundraising schemes, whether through online peer-to-peer lending or pyramid sales, have often led to protests when they collapsed, making Beijing particularly wary of quickly spreading ICOs. However, according to Yicai, on September 13th, the China Internet Finance Association issued a risk warning, saying that all of the so-called " virtual currency" trading platform in China lacks a legal basis. For both platforms, digital currency trading will grind to a halt by October 31, 2017. "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.

"There has been an apparent increase of such cases".

Reuters and other media have reported this week, citing sources, that China is planning the suspension, but the regulator has not yet made any such announcement. Users must also be informed of these changes by September 30th.

As Bitcoin and other crypto-currencies can be bought and sold without any government intervention, China's move is being seen as a way for Beijing to gain control over crypto-currencies. China is already calling on worldwide governments to exert more control over blockchains. The bank said under national laws merchants in the country can not accept digital currencies as payment for goods and services, while cryptocurrency exchanges were also not allowed. "Rather, the central bank may want to keep a few exchanges that are in compliance with regulations".

The Chinese central bank's announcement last week meant that Chinese firms would no longer be able to issue electronic currency units to raise funds.

Bitcoin and newer rivals like Ethereum and Litecoin have in recent times been fighting a losing battle against regulators. But a couple of Bitcoin exchanges have now announced that they are shutting down.

Digital currency Bitcoin continues to fall against the dollar on Friday, following a 16% collapse in its value on Thursday. "Those who pursue blockchain are also chasers of bitcoin".

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