Cryptocurrencies Crash After BTC China Announces Trading Halt
- Bitcoin is over 30% below its all time high of almost $5000 on 2 September.
- BTC China’s halt in trading follows announcement from regulators that meant ICOs were banned
BTC China (BTCC), one of the top three exchanges in China, has officially announced that it will halt trading for all customers based in China from 30 September. This is following an announcement published by Chinese regulators 10 days prior that meant the all Initial Coin Offerings (ICOs) were made illegal in China. New account registrations on the exchange will no longer be accepted, and there is no news on if trading will be reinstated at any time in the future.
However, BTCC has stated that their “other products, including BTCC Pool, are not affected by this change.”
Amid rumours of a crackdown of these digital currencies, most cryptocurrencies have declined for a fifth day. For Bitcoin, the price dropping for five days is its longest losing streak in over a year, and the price of one Bitcoin (BTC) is 32.9% below the all time high of $4975.04 it had set on 2 September (according to CoinMarketCap).
OKCoin and Huobi, two major exchanges in China, have not currently received any notice from regulators but are meeting with regulators tomorrow according to Charlie Lee (creator of Litecoin).
OKCoin and Huobi are meeting with regulators tomorrow. They might soon change their tune. 😞 https://t.co/sS05td86X4
— Charlie Lee (@SatoshiLite) September 14, 2017
However, Charlie Lee also believes that China (where around 25% of all trades occur) banning Bitcoin trading could be a good thing as it will no longer allow them to “play with the markets by banning Bitcoin” and that “crypto-currency cannot be killed by any country.”
While China hasn’t banned Bitcoin, it is possible that they will ban or freeze trading. If regulators and exchanges can agree on regulations, it can be expected that trading may not be halted by OKCoin and Huobi – but there is no official news yet on what the government would like to achieve in terms of cryptocurrencies.