China bans Bitcoin exchanges. Bitcoin price falls from $4600 to $3900 in 2 days
On Friday morning we all saw the headlines about China's plan to ban Bitcoin exchanges. There are no confirmed news that People of China Bank will ban Bitcoin exchanges, but something is happening. Bitcoin price went down from $4600 (Friday afternoon) to $3980 (Sunday morning). Let's review what information we do have about that.
Panic has started when Caixin (Chinese finance portal) published the article "The end of the virtual currency exchange era" with keynote to close Bitcoin exchanges in China:
Panic began and all started to scare of the consequences. What happens to Bitcoin price if China are out of the game. Check out the poll's results on Twitter "If China bans #Crypto exchanges, will global #Bitcoin $BTC fall below $2,000?":
One of the biggest China's Bitcoin exchanges OkCoin made the statement (they didn't receive a notice from regulator):
Dear OKCoin currency line users,
We received a large number of users by telephone and online tools to inquire about the news that the Chinese regulators will stop the spot currency trading news.
Is a unified reply as follows:
1. So far, we have not received a notice from the regulatory body, can not confirm the authenticity of the news.
2. OKCoin Bank as a Chinese enterprise, to comply with the local regulatory policy is the basic principles of business, if the report is true, we will firmly support the regulatory policy, with the relevant work, and resolutely protect the customer's asset security.
3. The report mentioned that the regulatory body did not declare the bit currency itself is illegal, nor prohibit the user and the user between the point-to-point transactions, if the report is true, OKCoin currency will stop the current bit currency on the RMB transactions, transition to digital assets Point-to-point trading platform.
Many people think that digital assets represented by Bitcoin are the inevitable product of the development of Internet technology. It is the largest practice of block chain technology. The block network of Bitcoin may become the underlying network of other public chains. There will be far-reaching impact.
Thank you for every user over the years on the platform support and understanding, we will do our best to serve every user.
September 9, 2017
One famous Twitter's page WhalePanda caught some dirty games are playing some frauders. With fake account @YouBTCC they reported "BTCC China Exchange has been directed by Chinese Regulators today to no longer accept deposits. BTCC will obey. #bitoin" - everyone, it's fake account and fake tweet:
Here is original Tweet from BTCC on Twitter:
BTCChina Exchange is operating normally, and has not received any new directives from Chinese regulators. We'll keep you updated. #bitcoin— BTCC (@YourBTCC) September 8, 2017
China always tries to regulate virtual currency markets. In two years period there were many restrictions, but Bitcoin and virtual currencies are still expanding. Maybe here is the major problem, that China's market is one of the biggest and China's regulator gets lots of complains from frauded people. Let's wait for next week and see what will happen.
Regulation must come, why everybody is so scared of legality? We still have huge price manipulation in the bitcoin ecosystem.
Follow live Bitcoin price here.