"All trading exchanges must by midnight of September 15 publish a notice to make clear when they will stop all cryptocurrency trading and announce a stop to new user registrations”, states a Chinese government notice.
The value of Bitcoin bounced back at around $3,680 after tumbling below $3,000 on Friday following China’s move to close down exchanges.
Bitcoin's price has started recovering after China closed down exchanges and has jumped back towards $4,000. For the first time in almost eight weeks, Bitcoin’s price tumbled to $3,000 on Friday. The steep crash in value came after China closed down exchanges BTCC, OkCoin and Huobi. However, it has bounced back and is staging a recovery.
As a result of the crackdown, BTCC has declared it will stop trading at the end of the month, while OkCoin and Huobi will be closed by the end of October.
"All trading exchanges must by midnight of September 15 publish a notice to make clear when they will stop all cryptocurrency trading and announce a stop to new user registrations”, states a Chinese government notice. Also, by September 20th, the government wants all the platforms to clearly state the procedures they are going to follow in regards to smooth and risk free withdrawals by investors. Prior to this, China announced to ban initial coin offerings. These stern actions from the country signal increasing hostility towards cryptocurrencies. Moreover, the statement of JP Morgan CEO, Jamie Dimon calling bitcoin a fraud also led to a drop in its price.
However, according to experts, the actions would only have a short-term impact. “Chinese volume account for less than 10 percent of global volume - they are no big deal”, says, Charles Hayter, founder of cryptocurrency analysis website Cryptocompare.
David Coker, a lecturer at Westminster Business School believes that China’s actions won’t be effective for three reasons. Firstly, anyone in China with a valid public key can still receive and sell Bitcoin. It will be difficult for the Great Firewall of China to block Bitcoin traffic originating on Blockchain's decentralized network. Secondly, it will be possible for Chinese citizens traveling to any foreign country to easily purchase Bitcoin at any public ATMs selling the cryptocurrency. Lastly, the history of economics teaches us, that capital has the ability to always find a way out.
Some other countries, like Australia, are also taking measures to regulate Bitcoin. However, on the other side, it is being increasingly adopted by numerous celebrities, like Michelle Mone, an undergarment entrepreneur !
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