Shanghai, Beijing Shut down Bitcoin Exchanges

Business Oct 04, 2017 No Comments

Banking controllers in Shanghai and Beijing have ordered domestic crypto currency exchanges to be concluded, state media posted this week, in the recent blow to the once prosperous market of China for virtual money.

A Beijing-located watchdog needed all interactions in the city to present a plan end of this week for shutting down their operations, as per the local media. Exchanges of Shanghai were also demanded last week to be closed, claimed the local media, without offering more data. The international worth of bitcoin has dropped in current days in the middle of rumor that the Government of China might shut down the trading marketplace following a prohibition on original coin offerings previously this month.

Shanghai, Beijing Shut down Bitcoin Exchanges

It was selling at $3,969 this week, down from highs almost $4,359 a week back. The report of the local media follows declarations in last week by 2 largest bitcoin platforms of China, OKCoin and BTCC, that they might stop all operations of trading following new regulations from government of China shutting down on crypto currencies.

The announcement by central bank of China last week meant that companies might no longer be capable of issuing digital currency units to lift funds. Following the move, the NIFAC (National Internet Finance Association of China) claimed last week that there was no authorization for platforms that engage in the selling of different forms of digital currencies.

The organization, which was founded by the central bank, alerted on its site that such currencies are more and more utilized as an equipment in criminal activities such as drug trafficking, money laundering, illegal fundraising, and smuggling. The move of the central bank was viewed as an approach for Beijing to get control over digital currencies, which are made utilizing blockchain tech and are bought and sold online without any regulation of the government.

In a bid to clean up its financial system and stop the progress of capital flight overseas, Beijing commenced early this year to squeeze controls on platforms trading bitcoin by limiting, in particular, payments considered extremely speculative. The 2 main platforms of China, OKCoin and BTCC, which works in Yuan, contributed for 22% the global trade in bitcoins.

Tushar Imade