Bitcoin up after China bans exchanges?
- ViaBTC has announced they will close registration, deposits, and trading from 25 September.
- OKCoin and Huobi (largest Chinese Bitcoin exchanges by volume) have also announced trading will be stopped from 31 October.
After BTCC’s announcement of a trading halt, other Bitcoin exchanges in China have also announced a close of their trading platforms in order to comply with new regulations. After dropping 40% from it’s all time high, the cryptocurrency is recovering and is up by $600 from it’s one month low of just below $3000 on some exchanges.
More exchanges close their trading services…
The exchange that will cease trading the earliest is Yunbi, where all trading will close 20 September. Following that, ViaBTC has announced that “registration, asset deposits and all trading pairs” will close on 25 September, and the website www.viabtc.com will be offically closed in Mainland China on 30 September. As with BTCC, ViaBTC’s Bitcoin “mining pool (pool.viabtc.com) … will not be affected.”
Two other exchanges, OKCoin and Huobi, have announced that their trading services will close on 31 October. According to Caixin, the reasoning behind the longer time until their exchanges will close is due to the fact they have a large number of users as well as the fact they haven’t recently added any ICO tokens. Initial Coin Offerings (ICOs) – often funded with Bitcoin and Ethereum – were outlawed by The People’s Bank of China (PBoC) on 4 September 2017 as they were seen as a threat due to many ICOs being scams in addition to being difficult to regulate and control. This meant that many ICOs were forced to shut down and refund their investors.
Bitcoin price increases?
Following the news of the closing of these exchanges, the price of 1 Bitcoin has risen by over 25% from it’s low of $3000 to $3800 due to less uncertainty and a lot of buying pressure from other markets indicating that Bitcoin (as well as other cryptocurrencies) will continue and survive without China. However, it is still below it’s all-time high but it is showing signs of recovery.
To note, the regulators and PBoC haven’t made Bitcoin illegal: mining and transacting Bitcoin is allowed. However, trading between a (Cryptocurrency – CNY) pair is no longer allowed.