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Down 38%: Bitcoin Stumbles Amid Regulatory Uncertainties In China

Image credit: Recession of stock market by leungchopan via Shutterstock.com

The price of bitcoin has fallen 38% since the beginning of this month as Chinese authorities are tightening their grip on cryptocurrencies.

Today, ViaBTC became the second cryptocurrency exchange to announce that it will cease trading on September 30, requesting users to start withdrawing their funds. This followed a similar announcement made yesterday by BTCChina, one of the biggest exchanges in China. BitKan, a leading cryptocurrency trading app, effectively suspended over-the-counter trading on its app on Tuesday.

All cited the recent notice from the People’s Bank of China that banned fundraising through initial coin offerings (ICOs), or token sales.

https://twitter.com/YourBTCC/status/908285586368167936

Earlier this month, the Chinese central bank prohibited the controversial fundraising method, urging the termination of current campaigns and imposing companies that raised funds through ICOs to refund investors. Chinese regulators said they were investigating 60 major ICO platforms.

But for Jason English, VP of Protocol Marketing at Sweetbridge, a global alliance that aims to use blockchain to create a liquid supply chain, the recent news from China might hint at regulations coming soon rather than an overall crackdown on cryptocurrencies.

“It is hard to believe that China intends to exit a market with so much potential upside. Even the apparent ban on ICOs seemed to be more of a stopgap in order to get some policies in place,” English said. “If anything, this example shows the volatility of the space and that some market-makers can likely take advantage of an unclear news cycle to create a sell-off and buy back opportunity.

“China is practically building a cottage industry for mining and exchanging bitcoin and other cryptocurrencies,” he noted.

Tough month for bitcoin and cryptocurrencies in general as a wave of negative n...

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