The latest announcements from China according to leaked documents have indicated that all Bitcoin and cryptocurrency exchanges must cease operations by the end of September. They have today (Friday 15th September) to make announcements to customers, and until 20th September to submit detailed closure plans to office.
The majority of Chinese exchanges will be forced to close due to the fact they’re ‘operating domestically without a valid license).
The news comes barely a week after China announced they would be banning all Initial Coin Offerings (ICO’s)
This isn’t the first time China have made attempts to slow the digital asset’s growth though. In 2013, China’s Central bank barred financial institutions from handling Bitcoin transactions. (Source)
These announcements seem to have a devastating affect on markets, as we have been witnessing over the past few days since the ICO ban, prices have been on a harsh down trend, with today’s announcement bringing even more chaos into the equation.
The Bitcoin price is down 41% since it’s current all time high on September 1st, down from £3755 ($5098) to £2207 ($2996) with other altcoins suffering even larger drops in value.
Ethereum, the current number 2 contender in terms of market cap has suffered a 50% drop since September 1st too, down from £298 ($404) to £148 ($200) and at the moment almost every cryptocurrency is down by similar amounts.
On the plus side though, Bitcoin and the cryptocurrency market have been through worse and it presents an ideal opportunity for those confident in the longevity of the project to buy more at a significantly reduced price.
Known for being incredibly volatile, these kind of drops are fairly normal, although we haven’t seen one with this magnitude for quite some time.
It’s unclear how long this ‘dip’ will last, or for that matter exactly how low it will go.
The ban in 2013 saw only temporary lows, so we’re optimistic the market will soon recover, although anything can happen when it comes to cryptocurrency!
Good luck to everybody! Many of us are down in our portfolio’s, so here’s to a speedy recovery!
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