Daily Management Review

After China Moves to Halt Exchange, Bitcoin Crashes Again


09/15/2017




After China Moves to Halt Exchange, Bitcoin Crashes Again
After there were media reports that China aims to stop exchange trading of cryptocurrencies by the end of September, bitcoin tumbled significantly and is heading for its worst week since January 2015. The media quoted people familiar with the developments in this aspect.
 
The media quoted people who asked not to be named because the information is private, saying t that a central bank-led group overseeing Internet finance risk had notified the regional Chinese regulators. And extending this week’s decline to 28 percent, bitcoin dropped 9.3 percent to $3,077.55 at 9:22 a.m. in London.
 
In what is expected to the most far-reaching measure to rein in the growth of cryptocurrencies by China, Chinese policy makers will move quickly on a previously reportable plan to end exchange trading, the notice suggests. An abrupt reversal in bitcoin after the digital currency soared more than 700 percent in the 12 months through August has resulted due to China’s crackdown, which includes a ban on initial coin offerings announced last week.
 
It would stop handling trades by month-end, said BTC China, one of the country’s largest cryptocurrency venues, resulting in a tumble for the digital currency on Thursday. they haven’t received any regulatory orders to halt said rivals OKCoin and Huobi.
 
There were no immediate comments available in the media from the People’s Bank of China.
 
People familiar with the matter had told the media on Monday that the cryptocurrency ban will only apply to trading on exchanges. The media further reported that over-the-counter transactions were not being planned to be stopped by the authorities.
 
A broad clampdown on financial risk in the run-up to a Communist Party leadership reshuffle next month is expected and the ban comes amidst that backdrop even though Beijing’s motivation for the exchange ban is unclear. warnings of a potential crash from skeptics including JPMorgan Chase & Co.’s Jamie Dimon and billionaire investor Howard Marks have been prompted and concerns of a bubble have been fueled by bitcoin’s surge over the past few years.
 
The world’s biggest bitcoin miners, who use vast amounts of computing power to confirm transactions in the digital currency is present in China and the country also accounts for about 23 percent of bitcoin trades.
 
Once the government has measures in place to provide greater oversight, cryptocurrency exchanges will be allowed to be to re-open by the Chinese regulators, some market observers have speculated.
 
He anticipates that the exchange will resume operations by year-end, said Matt Roszak, the chairman of Washington-based Chamber of Digital Commerce and an investor in BTC China.
 
“That is the expectation based on months of discussions -- the timing of which may be impacted a bit with the ICO phenomenon,” Roszak said in an email. “China is preparing to provide licensure for less than a handful of exchanges as it grapples with the meteoric increase in cryptocurrency trading, and speculation on ICOs -- licensure and engagement with government will help propel this industry forward.”
 
But bitcoin traders have not been comforted by predictions for an eventual resumption.
 
(Source:www.bloomberg.com) 






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