Bitcoin’s value sinks after Chinese exchange announces trading halt
But the digital currency remains 300% up year-on-year.
The value of the world’s most recognised cryptocurrency, bitcoin, has fallen sharply after one of China’s leading digital exchange platforms revealed it would soon cease trading.
In a tweet posted earlier today, BTC China revealed it would stop all trading by the end of the month.
BTC China said it decided to end operations after carefully considering the implications of Chinese authorities’ latest decision to outlaw cryptocurrency fundraising strategies, known as initial coin offerings.
BTC China is one of the largest bitcoin exchanges, by trading volume, not just in China but globally.
Cryptocurrency market analyst Coin Market Cap reveals bitcoin’s value has fallen 25% since breaking the $5,000 barrier for the first time earlier this month. At time of publishing it was trading around the $3330 mark.
Despite this downward fluctuation, the digital currency remains 300% up year-on-year.
Bloomberg reports Shanghai Financial Service Office has ordered city exchange operators to close down bitcoin trading platforms, according to China Business News.
An industry task force, led by China’s central bank, was allegedly set up to impede Chinese trading platforms.
In January this year, digital currency analytics website Bitcoinity revealed China was responsible for around 90% of global bitcoin trades. Now, China accounts for just over a quarter of the world’s bitcoin trading.
South Korea is another country that has been pursuing attempts to regulate digital currency dealings.
Earlier this week, on Tuesday, JP Morgan chief executive Jamie Dimon labelled bitcoin “a fraud”.
“It’s just not a real thing, eventually it will be closed,” he told attendees at the Delivering Alpha conference.
Check out finder’s estimations of bitcoin’s future value and exchange rates, as of September 2017.