Bitcoin Crashes On Massive Volume As China Plans To Shut Local Exchanges

in #bitcoin7 years ago (edited)

Having bounced back dramatically from the 20% plunge following China's ban of ICOs, Bitcoin is getting battered again this morning on very heavy volume as Caixin reports Chinese authorities plan to shut local Bitcoin exchanges.

Via Google Translate

The supervisory authority has decided to close the exchange of virtual currency in China , which involves all the currencies and currencies of the currency , such as "currency line", "coins" and "Bitcoin China."

Journalists confirmed the news from the person who came close to the Internet Financial Risk Special Rectification Working Group (hereinafter referred to as the Leading Group) and learned that the resolution had been deployed to the local level.

This is following the September 4 People's Bank of seven ministries and commissions joint announcement (hereinafter referred to as the announcement) after further supervision action. The announcement will mark ICO (Initial Coin Offering) as "illegal financial activities" and order the ICO to be banned on the date of publication of the announcement. All ICO tokens trading platforms need to be cleared to close the transaction.

Note, Caixin reports that the purpose of regulation is not limited to more than 60 ICO tokens trading platform, will not engage in a number of ICO virtual currency trading platform into the clean-up range, limited to close.

"In other words, the future in China can not have the so-called virtual currency and the currency between the trading platform."

The close to the leading group, said: "In this way, there is no so-called tokens, virtual currency and RMB between the two Can not trade the problem. "

Of course, Chinese authorities are careful to point out how nefarious Bitcoin is...

Regulators believe that virtual currency investment activities for illegal fund-raising and other types of illegal financial activities provided a hotbed, easy to cause greater financial risk.

Because ordinary investors can not distinguish between the difference between Bitcoin and Leigh coins, but also can not identify the difference between the various pseudo-virtual currency. And a large number of "money" illegal fund-raising activities are from the bitter currency frenzy, including the special currency trading places frenzy. "The bitter market is hot all the crazy 'currency' market and one of the root causes of illegal activities chaos, ICO crazy also from Bitcoin crazy.

Bitco currency trading place chaos and bit currency hot , Triggering the use of Bitcoin to support illegal financial activities, including pyramid schemes, fraud and other issues.

All sounds very ominous, and the reaction is swift...


With all the largest cryptocurrencies tumbling...


However, if traders read the full report, Caixin explains the regaulory crackdown is on ICOs and not Bitcoin...

The domestic exchange between all the virtual currency and the renminbi, represented by Bitcoin, Etherfax, Okcoin, will be closed within the deadline;but the regulation is not against the virtual currency itself, nor does it prohibit the one-on-one off-exchange of the virtual currency.

The bottom-line appears to be - just as we saw early in the year - China cracking down on capital outflows by disallowing the exchange of fiat currency into crypto via local exchange. But, most critically, they remain open-minded to the private exchange of virtual currencies. This is exactly what we saw early in the year when local P2P services jumped up to support this 'private' exchange away from 'official' exchanges.

It appears the future of bitcoin trading will be decentralized.

Buy the dip?


Source : http://www.zerohedge.com/news/2017-09-08/bitcoin-crashes-massive-volume-china-plans-shut-local-exchanges

Disclaimer : This is not the real Tyler Durden! I read ZeroHedge every day to find the one or two best articles and reformat them for Steemit. I appreciate the upvotes but consider following the account and resteeming the articles that you think deserve attention instead. Thank you! Head over to ZeroHedge.com for more news about cryptocurrency, politics and the economy.  

Sort:  

time to load up

Just hold your cryptos firm in your hands! Nothing can stop cryptocurrencies' domination in financial markets in folowing years/decades....Fiat money is history,usd is in bubble for so many years,and euro is in crisis too! New,crypto age is coming!

LAToken started with listing equities on their platform LAToken offers unique opportunities for investors of any size to own fractions of assets previously accessible only by large investors (e.g. real estate , bitcoin trading, forex, etc they want to completely transform access to capital, and enable cryptocurrencies to be widely used in the real economy by making real assets tradable in crypto.https://sale.latoken.com/?r=cfb74eff2e

Totally agree with you here. After new blockchains like Cosmos/Polkadot who will connect blockchains trustless and very fast will thrive decentralised exchange innovations. The blockchain space is/will be very interesting in the coming weeks.

Totally agree with you here

HODL now more then ever. A poor man would withdraw at this time. Bitcoin is good at one thing and that is bouncing back and raising in price. If one thing has been proven it is that Bitcoin multiplies in value over time.


http://www.FlippyCoin.com is the #1 Cryptocurrency Exchange!

World is heading towards cashless economy so digital currency has an important role so I don't think that any one can stop this. It may halt for some time because unusual situation in the world economy but choosing bitcoin I don't think there is any risk.

LAToken started with listing equities on their platform LAToken offers unique opportunities for investors of any size to own fractions of assets previously accessible only by large investors (e.g. real estate , bitcoin trading, forex, etc they want to completely transform access to capital, and enable cryptocurrencies to be widely used in the real economy by making real assets tradable in crypto.https://sale.latoken.com/?r=cfb74eff2e

If you read the article and understand the dynamics, this has really nothing to do with BTC. News like this always makes me smile as it's simply the age old tactic of shaking out all the weak hands with a little fear.

Investors use news like this for profit taking, and buying cheap on the way down knowing it will rise again.

Bitcoin's entire history has seen massive negative news, regulation, etc, to cause panic selling and speculation that the end of Bitcoin is here.

(Bitcoin always comes back. Just not instantly, but it always does. How do you think we got to $4,000 USD)

I yawn at this news, and gleefully watch it fall for buying opportunities.

Thanks nonetheless for sharing it though. It's exactly the type of news that most people expect and want to read. :)

buy the dip!

Totally agree with you here

China is shutting it down for the general population but the leading voices will continue trading. The Chinese government likely sold their coins just to buy back so they can get more coins for themselves, while ensuring their populace doesn't escape their grip.

They must be getting afraid of where crypto currencies are heading, cheers mike

It's just a bitcoin dump, everything will be ok with bitcoin !

its a good time to buy more then

Don't let free market price swings cause you to become emotional then sell out and lose out on long term profits... imho
its a fire sale...