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China is shutting down domestic Bitcoin exchanges

12 September 2017

Like bitcoin, the prices have bounced off this level and it trades above $300 as of this writing but the uncertainty and the risks continue to dominate the market in the short term. For a brief period of time, the Chinese exchange market overtook the USA in terms of market share to become the largest bitcoin market in the world, for the first time since November of 2016.

If the Chinese government ultimately decides to handle the issue privately with its local trading platforms by cooperating with bitcoin exchange as it has done since November of 2016, bitcoin price will likely be able to recover beyond the $4,500 mark towards new all-time highs, given the successful short-term scaling of the bitcoin network through SegWit. "Just 15 percent of global bitcoin trade against Japan, Korea, and the United States of America, which equal to 80 percent", said Kikvadze. As Fortune points out, Chinese investors use Bitcoin to protect themselves in case the yuan crumbles.

Chinese regulators ordered a halt to all virtual currency trading platforms in the country, acting to further rein in risks related to cryptocurrencies, Caixin learned from a source close to regulators.

The Wall Street Journal is a massively influential mainstream media publication in the global finance sector.

All of this has hurt bitcoin's current trading price as, in the space of a week, it has slumped from a record high of $5,000, to $4,247 at the time of writing.

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One of bitcoin's biggest influencers, Crypto Compare's Charles Hayter, said to CNBC recently that for China "nothing is ever certain" when it comes to cryptocurrencies.

The biggest cryptocurrency exchanges in China - OKCoin, BTC China and Huobi - said on Monday that they hadn't received any regulatory notices concerning bans on cryptocurrency trading.

That news came after the announcement on Monday to ban ICO financing that I reported here.

Despite having less than 2 percent of the network's transactions SegWit-enabled, the solution has led to a 0.8 MB average block size, substantial drop in the size of bitcoin mempool from 150 million to 6 million bytes, and most importantly, the elimination of bitcoin blockchain congestion. Unfortunately for Bitcoin, the Chinese government is not a fan of cryptocurrencies, which are mostly traded by Chinese citizens who are hedging against falls in the yuan.

According to the reports, the ban will be limited to exchange-based trading and will not affect over-the-counter transactions.

China is shutting down domestic Bitcoin exchanges