The cryptocurrency has started Friday on the backfoot too.
Bitcoin prices on every major Chinese exchange have slumped to sub-$3,000 levels on the noise of a possible suspension in trading as investors look to get out of what could be a tailspin going into the weekend. With administrators personally liable for what is said on groups they run, users of bitcoin exchanges OKCoin, Huobi and BTCChina are migrating to services beyond the Chinese government's reach. "Customers can withdraw their funds whenever they want". As of publication, bitcoin trades for approximately $3,700 per coin in the global markets. "They can become a tool for illegal fund flows and investment deals".
He said there should be a distinction between digital currencies and digital tokens, such as Bitcoin.
However the instructions also demand that the exchanges cancel any accounts that do not have connected bank accounts, and save all user and trading data on DVDs which they must then send to local authorities. Bitcoin trading platforms in Beijing are yet to see these announcements. The currency is now down more than $550 from yesterday, and it's still trending downward.
If so, that will raise some awkward questions for other Chinese entrepreneurs participating in the blockchain industry.
Not everyone seems to be in favor of shutting down Bitcoin trade in China.
There were nearly 40 platforms in China contributing to the initial coin transactions as of mid-July and nearly 65 problems have already been carried out in the country, lifting a sum of 2.6 Billion Yuan, as per a group of Chinese experts mentioned in the local media.
The stance of Chinese authorities could be pivotal for bitcoin's future. Huobi said it had not received any clear directives from regulators to do so. Users must present identification (e.g., a passport) and proof of residence in order to process their transactions.
Disclosure: The author of this text owns, or has recently owned, a number of cryptocurrencies, including BTC and ETH. It was expected that influential governing bodies like those in China would step in and take some of the heat out of the bubble, leading to speculation that such activities help correct the market back to more realistic valuation.