Chinese Crypto Crackdown

by | Sep 11, 2017

The price of Bitcoin has fallen, thanks once again to actions taken by the Chinese Government under Xi Jinping. China intends to shut down domestic Bitcoin exchanges, adding insult to injury for cryptocurrency traders. Traders of Bitcoin had already seen the price fall recently, due to the country banning ICOs (initial coin offerings), a type of fundraising via virtual currencies. This two-pronged attack by China on decentralised forms of currency has hit market sentiment, though across the rest of the world it looks as if major institutions are becoming ever more partial to the idea that they can use Bitcoin to their advantage. 

The move by China comes after months of scrutiny of the cryptocurrency market by Beijing, who are cracking down on an area of the economy that is much more difficult for the states communist government to control. Authorities don’t have plans to stop over-the-counter transactions, just those conducted on exchanges, according to sources. Despite this, trading volumes are likely to drop significantly. China accounts for around 25% of all Bitcoin trades. Tightening of financial regulations is likely to curtail a big cryptocurrency price rise for the time being.

The cost of a single Bitcoin is now at just over $4100, though it was sitting above $4600 before the weekend. The price of Ethereum is $292.54 at the time of writing. 

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