China orders immediate shuttering of Bitcoin exchanges

Image Shutterstock  Inked Pixels

Image Shutterstock Inked Pixels

China accounts for about 23% of bitcoin trades and is also home to numerous world's biggest bitcoin miners, who use vast amounts of computing power to confirm transactions in the digital currency.

BTCC has now announced it will end trading at the end of the month, with OkCoin and Huobi closing at the end of October.

"BTCChina encourages customers to withdraw their funds as quickly as possible", one of the exchanges wrote in a Friday tweet.

However, traders are using cryptocurrencies to circumvent financial regulations.

Bitcoin's perceived anonymity has been an important part of its growing appeal but also exposes the currency to claims that it is linked to the drug trade and other illegal activities.

Chinese news reports that two of the country's largest exchanges have been given an extra month to operate domestically. As a responsible cryptocurrency exchange platform, ViaBTC ( has made a serious decision to carry out the spirits of the policy - we will officially close the website for exchange business in Mainland China on September 30th.

While users were not told that they had to remove their cryptocurrencies, for those who have bought cryptocurrency with fiat already, the exchanges were adamant about customers completing a video interview for AML/KYC purposes first before withdrawing.

Bitcoin captivated the attention of financial markets this summer as the developer community embraced a new mechanism to improve usage and avoided what was labeled as a potential civil war, raising the profile of the digital ledger and fueling the speculative price rise. China's crackdown, which includes a ban on initial coin offerings announced last week, fuelled an abrupt reversal in bitcoin after it soared more than 700% in the 12 months through August. However, the only businesses affected are those relating to Btcchina; other Btcc businesses are unaffected as "Btcc is a separate company from Btcchina", the company noted, adding that "Btcc Pool, Btcc USD Exchange, Btcc Dax, Btcc Mobi, & Btcc Mint are not affected by this change".

"Global trading volume now appears more distributed than ever before", our State of Blockchain report noted in June.

A sign in Hong Kong reads "bitcoin accepted here". Bitcoin can be converted to cash when deposited into accounts at prices set in online trading. It has yet to be revealed how they plan to legally acquire yuan in the future.

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