China prohibits trade in bitcoins

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China prohibits trade in bitcoins

The Chinese authorities are going to close the bitcoin exchanges. The local central bank has already prepared instructions. The sharp rise in bitcoins increased the risk of cryptocurrency speculation in the country, which was the reason for the ban. Some exchangers have already gone underground, they can not control their powers.

Closing of the exchange
Chinese authorities intend to close all the exchanges in the country where you can exchange bitcoins. The Central Bank of China has already prepared a project that prohibits local platforms from providing cryptocurrency services, the Wall Street Journal reports, citing anonymous sources.

Chinese regulators have been studying the country's cryptocurrency market since the beginning of the year, the newspaper reported, and for some time the authorities have been thinking about introducing rules aimed at preventing money laundering. As the source of the Wall Street Journal notes, the decision to close the stock exchange was made because of “too much confusion” in this area.

"Big Mess"
The situation with cryptocurrencies in China was seriously complicated when Bitcoin rose sharply, as this increased the risk of speculation on the part of Chinese investors. According to analysts and investors, one of the reasons for the growth of bitcoins last year was the fact that the Chinese started using coins as a way to bet on the fall of the yuan.

Huobi and BTCC, the largest Chinese bitcoin exchanges, said that regulators had not yet asked them to close even amid growing speculation. “We are still awaiting official notification from regulators. This is a very busy period, ”said Bobby Lee, executive director of BTCC. The exchange of Huobi and OKCoin does not comment on the situation.

Implications of the decision
Bitcoin trading volumes have already fallen, authorities are trying to find a way to take control of the exchanges. According to analysts, most of the exchange activities were transferred to the underground, where users can send each other cryptocurrency using private addresses that act as safes.

Chinese authorities intend to ban the exchange of bitcoins.
Such an exchange of cryptocurrency Chinese authorities still can not control, the source reports Wall Street Journal. Bitcoin rate in Beijing this morning was 4,279 dollars, which is 16% lower than the maximum reached on September 1.

ICO ban
Recall that on September 4, the People’s Bank of China announced on its website the completion of the investigation of the initial placement of the initial offer of coins (ICO). According to the regulator, more than 90% of ICOs are potential violators of laws on illegal financing and countering fraud in the financial sector. The share of projects attracting funds for investment does not exceed 1%, said representatives of the Central Bank of China.

According to the official position of the Central Bank, from that day all ICOs in the country began to be considered illegal. The regulator intends to severely punish such violations in the future. At the same time, he threatened the legal consequences for the already completed ICO. Despite the strict ICO ban, the relevant statement of the Central Bank of China does not mention existing cryptocurrencies, such as Ether (Ethereum) or Bitcoin.

The cryptocurrency market met the news of the ban on ICO in China extremely negative. Bitcoin, according to Coindesk, fell by 5% at the auction, and the broadcast has lost 15% of the price.

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