The cryptocurrency world is in for a rude shock as it has emerged that China has decided to ban crypto exchanges.
According to reports in the local media BTCC, one of China’s biggest bitcoin exchange, has already closed down trading with local authorities asked by the government to take all the steps to shut down exchanges.
While there are no confirmed reports on whether Bitcoin has been banned in the country or not, we believe that the government will make a statement about bitcoin itself being banned or not in some time. We anticipate that China will continue allowing off the counter (OTC) direct peer to peer trading – and while this may create some loopholes, the era for bitcoin proliferation in China could be nearing an end.
The decision comes exactly 10 years since the first bank run in a decade. On precisely September the 14th 2007, Britain and the world woke up to what they thought was impossible and something that only happens in Mary Poppins. Extremely long queues formed outside of Northern Rock as depositors rushed to withdraw their holdings. It was the beginning of a banking collapse and the birth of Bitcoin.
Whether China intentionally chose this exact symbolic day to declare their exit is unclear, but the country, as we’ve known it until now, will be missed.
This space will soon move on and China as a cryptocurrency major could be forgotten as well. Bitcoin and other cryptocurrencies will suffer and China’s exit from the cryptocurrency exchange world could be a costly one.
As of this writing Bitcoin is trading at around $3500 down nearly 10%. Ethereum prices have stumbled as well by 10% and it is trading at $242. We believe there is a possibility the prices will go down over the next few hours and days but there will be a support price for all cryptocurrencies beyond which the decline isn’t likely.