Chinese bitcoin exchange to stop trading, price plunges 16 percent

Saturday, 16 Sep, 2017

"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", the notice said, as quoted by Reuters. Bitcoin lost a massive $1,000 in value since the beginning of September when its price was close to breaking a new record of $5,000.

On Sept. 8, Caixin, a Chinese business news outlet, reported financial authorities in the country have made a decision to close down virtual currency exchanges. A Chinese business news magazine, Caixin, said at one point up to 90 percent of global trading took place in China.

"This is not the first time that Jamie Dimon has spoken against the currency - the last time he had a similar go on the currency was in November 2015", he said.

"The Chinese ban is causing a panic in the market as mixed messages and lack of clarity has turned sentiment negative", Charles Hayter, founder of data analysis site Cryptocompare, said to Fortune.

Last week they banned the practice of creating and selling digital currencies or tokens to investors to finance start-up projects.

However, not everyone feels that this is the end for Bitcoin exchanges in China. On September 4, local reports had said that state regulators had prohibited firms from raising funds through initial coin offerings as they were unauthorised and vulnerable to financial scams, CNBC reported.

The executive director of the Reserve Bank of India, Sudarshan Sen, told a conference in Mumbai earlier this week that while the RBI was uncomfortable with "non-fiat" cryptocurrencies like Bitcoin, it was considering issuing its own cryptocurrency.

Panic also spread to other cryptocurrencies, with bitcoin's main rival ether - sometimes called ethereum - also down around 10 percent, according to Coinmarketcap. The price of Bitcoin and other cryptocurrencies have been devaluing since the #Chinese Government announced a crackdown on cryptocurrency exchange site in the country. The central bank has not responded to questions about the currency's future in China.

The price of Bitcoin and almost all other cryptocurrencies has dropped sharply in the last couple of days.

Arthur Levitt, former commissioner of the U.S. Securities and Exchange Commission, said that just because the cryptocurrency markets are wildly speculative at the moment doesn't mean cryptocurrencies are going away.