India hints at cryptocurrency, China to shut Bitcoin exchanges

Gladys Abbott
September 16, 2017

Even so, the notices suggest Chinese policy makers are moving quickly on a previously reported plan to end exchange trading, their most far-reaching measure to rein in the growth of cryptocurrencies.

BTCChina, one of China's largest bitcoin trading platforms, will stop registration of new users on Thursday due to the crackdown by regulators.

Last week, China banned initial coin offerings (ICOs), referring to them as an unauthorized fundraising tool that may involve financial scams.

"The Chinese ban is causing a panic in the market as mixed messages and lack of clarity has turned sentiment negative", Charles Hayter, founder of data analysis site Cryptocompare, said to Fortune. Chinese regulators said they were investigating 60 major ICO platforms.

However, there is much speculation that the Chinese government will establish a licensing process for cryptocurrency exchanges, with one theory being that OKCoin and Huobi will receive licenses before or shortly after their suspensions take effect.

ThinkMarkets analyst Naeem Aslam said the cryptocurrency had been on a remarkable run.

Total Market Capitalization Cryptocurrency

China's central bank has yet to respond to questions about bitcoin's future in the country but earlier warned it was traded without regulatory oversight and might be linked to fraud.

Because of bitcoin's recent tumble, the total value of all cryptocurrencies now sits at about $105 billion. It won't end well. "Someone is going to get killed", he said, referring to the tulip mania crash in the 1600s. He supported his argument by saying that currencies have legal support. "It will blow up".

James Butterfill, head of research and investment strategy at ETF Securities in London said Mr Dimon's comments could be the "tipping point" for bitcoin.

"Blockchain might be the big disruptive idea, but Bitcoin itself is a disruptive threat to the big banks".

In the latest developments, after Dimon's statement, Bitcoin price has suffered losses up to 11%. Overall, confidence in cryptocurrencies has been on the rise for years, and people are still likely to be drawn to its potential for rapid gains. "We shouldn't be surprised that this threat sparks extreme reactions from the industry's top insiders", Assia added.

More news: Jennifer Garner cries over 'Hamilton' after dental anesthesia

Other reports by LeisureTravelAid

Discuss This Article

FOLLOW OUR NEWSPAPER