Not everyone seems to be in favor of shutting down Bitcoin trade in China. Without access to domestic bitcoin exchanges any longer, numerous flourishing mining operations in China may close down or switch to other cryptocurrencies as a central focus.
"After carefully considering the "Seven Regulatory Bodies" announcement of preventing risks associated with token fundraising, BTCC has made a decision to immediately stop accepting new account registrations on the BTCC exchange", explains CEO Bobby Lee's translation of the announcement. While many developed countries in the West and Asia allow digital currencies to be accepted as payments and have rules about taxation of gains, some emerging countries view them as an illegal form of payment.
China's regulators plan to tighten the digital currency activities in China.
After those two "cold shocks" for bitcoin investors, today bitcoin hit the $3,500 level. The closure of BTCChina is perhaps a portent of what the other Chinese exchanges face.
We have seen a fair amount of Bitcoin price volatility over the past week or so. Effective September 15, 2017, at 9:30 China Standard Time, both exchanges suspended new user registration and deposits.
According to CNBC, strategist Tom Lee believes bitcoin could surge to $25,000.
The news has caused the value of Bitcoin to plunge by more than one-third, falling from $3,860 to $2,457 as the news broke.
Remember also, this time around there hasn't been any formal guidance from government - and it appears local exchanges Huobi and OKCoin will continue letting users trade between cryptocurrencies. Now the China-based exchange BTCC has announced it will be shutting down operations on September 30.
While a United States cryptocurrency ban isn't likely, we are likely to see increased regulatory scrutiny of the cryptocurrency economy-especially from the Securities and Exchange Commission.
In addition to the growing fear across Asia and the US, Australia has also taken serious measures against the growing concerns over bitcoin.
The price of bitcoin fell dramatically upon the news.