Chinese Crypto’s Shutting Down

Internet finance regulators in Beijing have ordered all cryptocurrency exchanges in the Chinese capital to issue notices to cease trading.

So far two of the largest Chinese Bitcoin exchanges Huobi.com and Okcoin.cn announced that they will cease trading by the end of September. BTC China, another major cryptocurrency firm, issued a statement that it would also halt trading by the end of September.

With Huobi.com and Okcoin.cn’s announcements, it means China’s three largest Bitcoin exchanges will officially cease trading by the end of this month. In July, Bitcoin trading volume in China reached $4.61 billion, with the three exchanges making up 60 percent of the total volume.

Submit Exit Plans

On the 4th of September The People’s Bank of China announced an immediate ban on initial coin offerings, declaring them illegal and a threat to financial stability. It also warned in the circular, which carried the endorsement of two regulators, that schemes which are already launched should repatriate funds to investors.

All cryptocurrency exchanges in Beijing are required to stop accepting new customers immediately and submit risk-free exit plans to the local regulator by 6pm, September 20. Exchanges are also ordered to set up special bank accounts to deposit clients’ assets, deactivate all other accounts and make reports to China’s central bank.

China is now in the process of officially banning all cryptocurrency exchanges onshore, after prohibiting initial coin offering (ICO) and ICO platforms from engaging in trading on Sept 4. Exchanges in Shanghai and Shenzhen are also expected to close their doors.

Souce: Finews