That didn't took long. China’s longest running bitcoin exchange, BTC China, announced that they will be suspending its local trading service by the end of September.
Currently the country’s 2 other major exchanges — Huobi & OKCoin followed suit to say they will cease by the end of October.
On Monday The Wall Street Journal reported that the Government of China intended to shut down bitcoin exchanges after banning ICOs the previous week.
Then govt. officials began meeting with exchanges this week. The meeting is about the trading suspensions.
While the exchanges will be not allowed to facilitate the buying of Crypto coins using Chinese Yuan and the trading of coins, yet they will continue to operate on international-facing exchanges along with associated services.
Small exchanges like Yunbi, is announced in Chinese that it will shut up shop on 20 September.
This sudden impact of the crackdown sent bitcoin prices falling. As the crypto currency dropping below $3,000 on few exchanges for the first time in a month — soon it quickly rebounded currently it had nearly made up the losses.
There are plenty of reasons for all this.
One of the most important could be that China is no longer the dominant in bitcoin trader as it was used to be. A series of government bans like the recent four-month trading freeze due to security concerns have seen its share of global trading drop right from 90 percent in last year to just over 10 percent today.
Big Markets like U.S., Korea and Japan have emerged to account for the lion’s share of global trading volumes.
I think we can assume that the impact of this ban in China is not as severe as it initially may seem.
Do let me know what you think in the comments below.
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