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Major Bitcoin Exchange In China Shutting Down


One of China's largest bitcoin trading platforms is shutting down as Chinese regulators crack down on crypto-currencies.

BTCChina said it will stop all trading for its China-based customers from September 30.

"After carefully considering the announcement published by Chinese regulators on 09/04, BTCChina Exchange will stop all trading on 09/30, "BTCChina said in a tweet on Thursday.

However, the company's other services, including its BTCC Pool for miners, will continue to run. Trading on the BTCC international exchange will also not be affected.

Bitcoin prices fell about 9 percent on Thursday following the announcement by BTCC.

Huobi, another Chinese crypto-currency exchange, said that while it has not received any guidance from the Chinese government, it will put its users' best interests as the top priority.

The burgeoning crypto-currency sector in China has come under increased scrutiny from regulators due to potential financial risks after a boom in raising money through initial coin offerings or ICOs and as valuations for bitcoin and Ethereum have surged.

In early September, the People's Bank of China announced that ICOs are illegal and ordered that all ongoing offerings be halted immediately.

According to Chinese media outlet Caixin, the central bank defined ICOs as an unauthorized fund-raising tool that may involve financial scams. A list of 60 major ICO platforms had been noted for local financial regulatory bodies to inspect.

Organizations and individuals that have raised funds through ICOs were asked to refund the raised amount in order to protect the interests of investors and properly deal with risks.

China's National Internet Finance Association or NIFA, a self-regulatory association in China focused on digital finance, has asserted that crypto-currencies like bitcoin have become a tool for speculation among investors and is also serving as a payment conduit for illegal fundraising as well as money laundering.

by RTTNews Staff Writer

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