Published: Sat, September 16, 2017
Markets | By Erika Turner

Bitcoin Value Drops After Reports of Chinese Regulation

Bitcoin Value Drops After Reports of Chinese Regulation

Chinese authorities will close down bitcoin exchanges across the country, according to Market Watch.

Following the announcements from Huobi and Okcoin the price of bitcoin spiked in value reaching $3,640 across global exchanges after dipping below $3K earlier this morning. The Chinese central bank said those who have already raised money should pay it back.

BTCChina, one of China's largest bitcoin trading platforms, which also runs an worldwide exchange out of Hong Kong, will stop registration of new users from Thursday, it said on its official microblog.

Additionally, the Chinese digital finance organization, China's National Internet Finance Association (NIFA), released a statement today that cryptocurrencies like Bitcoin may be hot with investors but was a payment conduit for illegal activity, CoinDesk reported.

This week, JP Morgan chief executive Jamie Dimon described bitcoin as "a fraud", saying it will "blow up".

US Family Incomes Up, Poverty Down
Tuesday's report was based on survey data collected earlier this year for 2016, the final full year of the Obama administration. That contrasts with white households at 2.0 percent ($65,041) and a 4.3 percent jump for Hispanic households ($47,675).

Last week they banned the practice of creating and selling digital currencies or tokens to investors to finance start-up projects.

"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".

The price of Bitcoin tumbled sharply following the BTCC announcement late on Thursday but has since regained some ground.

BTCC, one of the world's biggest Bitcoin platforms, said in a tweet Thursday after "carefully considering" the directive from regulators, trading on its platform would cease and it would stop registering new users from Thursday. This appears to be only part of a major crackdown on cryptocurrencies in China as it had earlier banned initial coin offerings (ICO's) by which some were raising funds to launch new currencies.

While the country has long held a negative view of the digital currency, a report last week claimed that the Chinese government was planning to shut down local bitcoin exchanges. It added that the exchanges would be told to leave the market. Accordingly, the ICO boom pumped up the price of Bitcoin and Ethereum. Other crypto currencies are also in the red.

Like this: