HomeCryptocurrencyBitcoinReport Casts Doubt on Future of China's Bitcoin Exchanges

Report Casts Doubt on Future of China’s Bitcoin Exchanges


Regulators in China are said to be considering a move to close all domestic bitcoin and cryptocurrency exchanges.

According to a report from business media Caixin, sources close to China’s internet financial risk rectification work group, have said the decision has not only been reached, but delivered and deployed to local authorities.

The work group was first launched by China’s State Department in 2016 to tackle market risks in the country’s financial technology industry such as p2p lending. Located in the People’s Bank of China, it also consists of representatives from China’s banking and securities commissions.

As of now, no official announcements from regulators have been seen. However, there are reasons to believe the report may be authentic.

For example, on September 2, Caixin revealed that the same central work group had delivered internal documents to local authorities regarding the ban on token fundraising activity including the ICO, two days before the official announcement.

In a latest Tweet, People’s Daily, the official newspaper of the Chinese Communist Party, said that “Chinese supervisory authority has decided to close local virtual currency exchanges.” However, the news outlet did not link to any more information for elaboration.

Such a move, if true, may further tighten the regulation in China regarding cryptocurrency activities, as by aiming at major exchanges, it may put restrictions on how bitcoin and ether can be traded for traditional currency in the country.

“That is to say, there will not be any so-called platforms in China that offer exchange service among tokens, cryptocurrencies and fiat currencies,” the source said.

However, at press time, local exchange operators are said to be pushing back on the claims.

When reached, Huobi said it was operating normally, and that it has not received any notification from authorities on the matter. Other exchanges including OKCoin, BTCC and Binance did not respond to inquiries.

“BTCChina Exchange is operating normally, and has not received any new directives from Chinese regulators,” the exchange said on reddit.

According to the data from CoinMarketCap, major China-based cryptocurrency exchanges are among the world’s top 20 by trading volume.


Cyprus registers Binance as a cryptocurrency service provider.

Binance, a cryptocurrency exchange, will be able to provide services for virtual currencies in Cyprus as a result of the platform's recent registration with the...

More than 24,000 ATMs in Brazil will offer USDT through Tether and Smartpay.

Usdt, the largest dollar-pegged stablecoin on the market, was created by Tether, a company. Tether recently announced that more than 24,000 ATMs in Brazil will...

To solve the blockchain modularity issue, Celestia raises $55 million.

The project Celestia, which seeks to address the alleged centralization issue in the current monolithic blockchains, has announced the completion of its most recent funding...

Hong Kong considers removing the “Professional Investor-Only Requirement” and allowing retail investors to trade cryptocurrency.

Securities and Futures Commission (SFC) of Hong Kong's director of licensing and head of the fintech division both confirmed that the regulator is taking into...
[td_block_social_counter style="style8 td-social-boxed td-social-font-icons" facebook="tagdiv" twitter="tagdivofficial" youtube="tagdiv" custom_title="Follow us" block_template_id="td_block_template_11" border_color="#fbb03b" f_header_font_size="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTgifQ==" f_header_font_weight="600" f_header_font_family="702" f_header_font_transform="uppercase" tdc_css="eyJwb3J0cmFpdCI6eyJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsInBob25lIjp7Im1hcmdpbi1ib3R0b20iOiI0MCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3NjcsImFsbCI6eyJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn19"]

Most Popular