Bitcoin Blocked in China: ICO Ban Has Ripple Effect on Cryptocurrency Businesses

Earlier this year, Chinese digital currency exchanges temporarily halted customer withdrawals to upgrade their anti money laundering controls at the behest of financial regulators.

China’s Bitcoin exchanges said on Saturday they are still awaiting clarification from the authorities on a media report that they will be shut down. According to data from industry tracker Coinmarketcap, the total cryptocurrency market capitalisation now stands at $148 billion, down from $163 billion just a couple of hours ago.

The NEO announcement also offers some respite for Bitfinex, which was left scrambling in the wake of an announcement by a joint commission of Chinese agencies that initial coin offerings (ICO) were now banned in the country.

After peaking close to levels of $180 billion, the total market cap of cryptocurrencies has dropped around 20 per cent as of time of reporting.

The central bank imposed an immediate ban and required companies that raised funds through ICOs to refund investors. It is now delayed until there is clarification of the new Chinese regulatory framework.

Despite such hurdles, interest in creating cryptocurrency-based ETFs is strong, said Laura Morrison, Global Head of Exchange Traded Products at CBOE Holdings Inc’s Bats exchange, the would-be listing venue for the bitcoin ETF under review by the SEC.

“The large price falls can be attributed to panic amongst traders and profit-taking”, said Cryptocompare founder Charles Hayter.

Since then, Canada and Singapore have followed suit, with Russian Federation expected to be next.

The Caixin story claims that the regulators are not moving to ban digital currency altogether – at least not yet.

For the buyer, therefore, the main reason for buying these highly risky tokens is often simply a bet that their value will rise.

For those who are looking to take advantage of Bitcoin and other cryptocurrencies price fluctuations, Some brokers provide traders with instant access to trade Bitcoin, Bitcoin Cash, Ethereum and other cryptocurrencies.

Leave a Reply

Your email address will not be published. Required fields are marked *