Bit­coin China to stop trad­ing

Plat­form com­ply­ing with govt calls to curb risks

Global Times US Edition - - BIZUPDATE -

Bit­coin China an­nounced on Thurs­day that it had stopped ac­cept­ing new reg­is­tra­tions and that it will shut down all trad­ing ac­tiv­i­ties on its plat­form by Septem­ber 30.

The move came af­ter ear­lier re­ports that said Chi­nese of­fi­cials were mulling a clo­sure of do­mes­tic ex­changes for vir­tual cur­rency trad­ing, which sent the price of Bit­coin into a nose­dive.

Fol­low­ing the Bit­coin China an­nounce­ment, the price of Bit­coin plunged 6.09 per­cent to $3,630 at around 7:45 pm on Thurs­day, the low­est level since Au­gust 12, ac­cord­ing to fi­nan­cial data provider trad­ingview.com.

The price of Bit­coin has been on a steep down­ward curve since Tues­day, when sev­eral media out­lets car­ried re­ports of Chi­nese of­fi­cials plan­ning to ban com­mer­cial trad­ing of vir­tual cur­ren­cies. The price fell from a high of about $4,360 to be­low the $4,000 mark on Wed­nes­day.

In a state­ment, Bit­coin China said it had made the de­ci­sion based on a gov­ern­ment doc­u­ment re­leased on Septem­ber 4.

“Ad­her­ing to the prin­ci­ple of pre­vent­ing in­vest­ment risks and max­i­miz­ing the in­ter­ests of users, the Bit­coin China team has care­fully dis­cussed and made th­ese de­ci­sions,” the state­ment said. Bit­coin China is one of the largest plat­forms for vir­tual cur­rency trad­ing.

The Peo­ple’s Bank of China, the coun­try’s cen­tral bank, and sev­eral other agen­cies re­leased a doc­u­ment on Septem­ber 4, in which they voiced their con­cerns over risks in vir­tual cur­rency trad­ing and sug­gested mea­sures to curb such risks, in­clud­ing bar­ring new is­suance of ini­tial coin of­fer­ings.

An­other main Bit­coin trad­ing plat­form, btc­trade.com, also said in a ban­ner on the web­site that the plat­form “will re­spond pos­i­tively to na­tional pol­icy,” with­out pro­vid­ing fur­ther de­tails.

In an ear­lier state­ment re­leased on Satur­day, the plat­form said it had not re­ceived any in­struc­tion from the au­thor­i­ties but that it would com­ply with reg­u­la­tions and poli­cies.

Huobi.com, an­other pop­u­lar trad­ing plat­form, ap­pears to be ac­tive in terms of reg­is­ter­ing new ac­counts as of press time on Thurs­day.

Fol­low­ing the clo­sure of Bit­coin China, some traders in China have turned bear­ish about the out­look for the vir­tual cur­rency.

“Within two months, Bit­coin will be back to its orig­i­nal ‘price’ and will never be able to bounce back,” one user com­mented in a post on baidu on Thurs­day. But some are still op­ti­mistic. One ne­ti­zen com­mented on the same post on baidu.com that Bit­coin prices could bounce back af­ter bot­tom­ing out.

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