BTCC, one of the largest Chinese Bitcoin exchanges, has announced it will be closing down its China-facing trading operations effective September 30. Following the statement, Bitcoin price plunged to to reach a three-week low of $3,275.
“After carefully considering the announcement published by Chinese regulators on 09/04, BTCChina Exchange will stop all trading on 09/30.” tweeted BTCC.
It is clear that Chinese government is going after these exchanges. Although, the government has still not formally announced any plan as such, but rumours are now becoming a reality.
It wasn’t just Bitcoin, every other cryptocurrency out there suffered serious losses bringing the entire market cap down to $113 billion from $165 billion just a few days ago.
However, even if China heavily regulates Bitcoin exchanges in the country, it will have little to no effect on Bitcoin in the long term as the over-the-counter (OTC) market for the digital currency will continue to post solid performance.
On Sept 2, Bitcoin price touched an important psychological level of $5000, leading investors to make some quick profits. It is important to note that, nothing can go up forever, the corrections are healthy in the long run.
At the time of writing Bitcoin price is trading at $3350 after losing 15% of its value in the past 24 hours. It would not be surprising to see Bitcoin finding support at $3000 if/when an official statements comes from China.
Top Stories from the Crypto World
1. OKCoin and Huobi to meet regulators tomorrow
After OKCoin and Huobi had announced they were still open for business, Chalie Lee, creator of Litecoin, and brother of BTCC CEO Bobby Lee, tweeted saying “OKCoin and Huobi are meeting with regulators tomorrow. They might soon change their tune.”
If OKCoin and Huobi do suspend trading on their high-volume exchanges, they will join BTCC, which announced suspension on September 30th and has already halted any new signups.
Once these major exchanges do shut down, expect Bitcoin prices to plummet further.
A good thing to know: There is a chance this crash is caused by a panic sell-off by traders in China, South Korea, US and Japan. Perhaps, the closure of BTCC does not translate to a nationwide ban on bitcoin exchanges. Some sources suggest, the ultimate plan of the PBoC and Chinese regulators is to provide and offer a licensing program for exchanges, not ban trading platforms.
2. Japan’s GMO reveals more cryptocurrency mining details
Recent legalization of Bitcoin in Japan coupled with general uptick in the popularity of cryptocurrencies has invited digital services firm GMO with its forthcoming cryptocurrency $90 million plan.
According to TechWave, GMO, which was founded in the 1990s and already operates its own cryptocurrency exchange, said it would begin mining – an energy intensive process by which new transactions are added to a blockchain –in the first half of 2018.
3. India’s central bank looking to launch its own digital currency
According to Economic Times, India’s Central Bank, the Reserve Bank of India (RBI), is considering the possibility of issuing its own digital fiat currency as an alternative to Bitcoin.
The bank also expressed its displeasure with cryptocurrencies such as Bitcoin, calling them “private currencies.”