China’s regulators are said to be on a move to consider the close of all domestic bitcoin and cryptocurrency exchanges.
According to a report from
business media Caixin, a sources
close to China's internet financial risk rectification work group, said the
decision has not only been reached, but also delivered and deployed to local
authorities.
The work group was first launched by China's State Department
in 2016 to tackle market risks in the country's financial technology industry
such as p2p lending. Located in the People’s Bank of China, it also consists of
representatives from China’s banking and securities commissions.
As of now, no official announcements from regulators have been
seen. However, there are reasons to believe the report may be authentic.
Considering the case on September 2, Caixin revealed that the same central work
group had delivered internal documents to local authorities regarding the ban
on token fundraising activity including the ICO, two days before the official
announcement.
In a latest Tweet, by People's
Daily, the official newspaper of the Chinese Communist Party, has said that
"Chinese supervisory authority has decided to close local virtual currency
exchanges." However, the news outlet did not link to any more information
for elaboration.
Such a move, if true, may further tighten the regulation in
China regarding cryptocurrency activities, as by aiming at major exchanges, it
may put restrictions on how bitcoin and ether can be traded for traditional
currency in the country.
"That is to say, there will not be any so-called platforms
in China that offer exchange service among tokens, cryptocurrencies and fiat
currencies," the source said.
However, at press time, local exchange operators are said to be
pushing back on the claims.
When reached, Huobi said it was operating normally, and that it
has not received any notification from authorities on the matter. Other
exchanges including OKCoin, BTCC and Binance did not respond to inquiries.
"BTCChina Exchange is operating normally, and has not
received any new directives from Chinese regulators," the exchange said on
reddit.
According to the data from CoinMarketCap, major China-based
cryptocurrency exchanges are among the world’s top 20 by trading volume.
See tweet below..
Chinese supervisory authority has decided to close local virtual currency exchanges, involving "currency line", "coins" and "Bitcoin China". pic.twitter.com/xnvpAsGRUJ— People's Daily,China (@PDChina) September 8, 2017
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