Published: Sat, September 16, 2017
Money | By Oscar Reynolds

China's Bitcoin exchanges begin closing shop sending BTC prices down

China's Bitcoin exchanges begin closing shop sending BTC prices down

On Thursday, BTCChina, the second largest Chinese exchange, said it would stop trading at the end of the month. People may be selling their cryptocurrencies such as Bitcoin while potential users of this coins from other countries are waiting to see whether their governments will impose measures similar to those of China. Earlier today, both ViaBTC and Yunbi announced they would suspend trading, with Yunbi closing on September 20 and ViaBTC shutting down its Mainland China operations on September 30.

"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 government notice said.

Virtual currency bitcoin crashed for the fifth consecutive day on Thursday, its longest downward streak in more than a year, Bloomberg reported.

The correction in the cryptocurrency market continues.

Following China's ban on initial coin offerings of cryptocurrencies, the Asian country looks set to ban all digital currencies by the end of September.

"China is preparing to provide licensure for less than a handful of exchanges as it grapples with the meteoric increase in cryptocurrency trading, and speculation on ICOs - licensure and engagement with government will help propel this industry forward".

This week at a Delivering Alpha conference, JPMorgan Chase CEO Jamie Dimon called the digital currency "a fraud" and said he would fire any employee trading bitcoin for being "stupid". "Someone is going to get killed", in a reference to the spectacular rise and collapse of tulip bulb prices in Holland during the early 17th century, an economic bubble that ruined some European investors.

NIFA said in their announcement that Bitcoin is a tool for illegal fundraising and money laundering. "It will blow up".

In response to Dimon's speech, John McAfee, McAfee security firm founder and current company owner of MGT Capital Investments which mines the cryptocurrency, retaliated.

Meanwhile, a recent report by Recorded Future says that North Korea appears to be funding its projects with bitcoin. Miners process Bitcoin transactions and, in exchange, are rewarded with newly created bitcoin.

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