Economy

WSJ, Bloomberg Latest to Claim Bitcoin Exchange Crackdown in China

WSJ, Bloomberg Latest to Claim Bitcoin Exchange Crackdown in China

Given that the Chinese government and its financial regulators had not released any abrupt regulations on bitcoin, Ethereum and the cryptocurrency market in general, bitcoin price was on an ideal trajectory towards achieving the interim targets of various prominent financial analysts including Max Keiser, who have altered their short-term price target from $5,000 to $10,000. The country accounts for about 23 percent of bitcoin trades and is also home to numerous world's biggest bitcoin miners, who confirm transactions in the digital currency.

As of yet, neither OKCoin nor Huobi - two of the largest platforms of their kind in the country - have been ordered to cease activity, with China's central bank refusing to comment on this report. While existing users will likely still trade, according to Zhou Shuoji, a founding partner at FBG Capital interviewed by Bloomberg, it will make it more hard for new users to start trading Bitcoin-thereby limiting Bitcoin's potential growth.

Bitcoin slumped last Friday after Caixin magazine reported China's plans, capping the virtual currency's biggest weekly retreat in almost two months.

While governments around the world regulate and closely watch IPOs, ICOs are not regulated, and they have been used by many companies to raise funds without a guarantee that the token issuer will re-buy tokens and not run away with most of the funds. Bitcoin has jumped about 600 percent in dollar terms over the past year, part of a broad surge in virtual currencies that has fueled concerns of a bubble. As regulations tightened, China's share has slid to less than 30%.

More news: European Union to put onus on United Kingdom to provide border solution

Reports are multiplying that China is about to shut down its domestic cryptocurrency exchanges.

Bitcoin was trading lower by around 1.3 percent at $4,170 on the Bitstamp platform on Monday.

The exchange ban is unlikely to have a major impact on the prices of cryptocurrencies because venues outside China will continue trading, according to FBG Capital's Mr Zhou.

According to the The Wall Street Journal, bitcoin exchanges are now being clamped down on, with no trading to be done within Chinese borders. With China being such a huge country, and one of the biggest Bitcoin miners in the world, it's no wonder that the price dropped significantly. "So you will get quite substantial pullbacks at some point".


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