Economy

The world's oldest bitcoin exchange is shutting down in China

The world's oldest bitcoin exchange is shutting down in Chinaā€¯

Although there's a terrific arbitrage opportunity, removing bitcoin from a Chinese exchange would prove hard at this stage. Beijing itself even hosts the OkCoin and Huobi exchanges, both of which are closing trading at the end of October. The process is fast and easy with convenient and advanced trading platform (desktop and mobile), low spreads and instant execution.

The sell-off in the bitcoin-US dollar exchange rate (BTC/USD) appears to have stalled, with prices trading at $3,550 at press time. On September 14, BTCC, one of China's biggest exchanges, announced that it is halting trade in response to a notice from Chinese regulators.

[BTCC] will stop all trading on the exchange on Saturday September 30th.

However, not everyone feels that this is the end for Bitcoin exchanges in China. With administrators personally liable for what is said on groups they run, users of bitcoin exchanges OKCoin, Huobi and BTCChina are migrating to services beyond the Chinese government's reach. Yicai also quoted the Shanghai Municipal Office saying that it has already ordered shutting down a number of Bitcoin trading platforms.

The swap value dropped to Rs 2.2 lakh per bitcoin from Rs 3.44 lakh more than two weeks ago, dealers said. The PBoC and Chinese financial regulators finally stopped dragging Chinese exchanges through one policy change to the next regarding renminbi, although there may be more to come.

However when it comes to ICOs cautious should be echoed all around as warning releases from officials in a global scare are being given out.

With the decision in 2014 by the IRS to treat cryptocurrencies as though they as property in terms of taxation, the agency has been met with controversy over not informing consumers how to genuinely report their bitcoin purchases and gains as a whole. Bitcoiners across social media are not pleased with the ICO movement tarnishing bitcoin's reputation and believe the news from China is a direct result of that particular market.

But although Chinese exchanges used to dominate bitcoin trading - according to their reports - because of the fact that they did not charge fees, volumes have plunged since January, when Chinese authorities made fees mandatory.

Some experts think the wider acceptance and government approval is not as certain as bitcoin investors expect.



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