Bitcoin Crashes On Massive Volume As China Plans To Shut Local Exchanges

Tyler Durden's picture

Having bounced back dramatically from the 20% plunge following China's ban of ICOs, Bitcoin is getting battered again this morning on very heavy volume as Caixin reports Chinese authorities plan to shut local Bitcoin exchanges.

Via Google Translate

The supervisory authority has decided to close the exchange of virtual currency in China , which involves all the currencies and currencies of the currency , such as "currency line", "coins" and "Bitcoin China."


Journalists confirmed the news from the person who came close to the Internet Financial Risk Special Rectification Working Group (hereinafter referred to as the Leading Group) and learned that the resolution had been deployed to the local level.


This is following the September 4 People's Bank of seven ministries and commissions joint announcement (hereinafter referred to as the announcement) after further supervision action. The announcement will mark ICO (Initial Coin Offering) as "illegal financial activities" and order the ICO to be banned on the date of publication of the announcement. All ICO tokens trading platforms need to be cleared to close the transaction.

Note, Caixin reports that the purpose of regulation is not limited to more than 60 ICO tokens trading platform, will not engage in a number of ICO virtual currency trading platform into the clean-up range, limited to close.

"In other words, the future in China can not have the so-called virtual currency and the currency between the trading platform."


The close to the leading group, said: "In this way, there is no so-called tokens, virtual currency and RMB between the two Can not trade the problem. "

Of course, Chinese authorities are careful to point out how nefarious Bitcoin is...

Regulators believe that virtual currency investment activities for illegal fund-raising and other types of illegal financial activities provided a hotbed, easy to cause greater financial risk.


Because ordinary investors can not distinguish between the difference between Bitcoin and Leigh coins, but also can not identify the difference between the various pseudo-virtual currency. And a large number of "money" illegal fund-raising activities are from the bitter currency frenzy, including the special currency trading places frenzy. "The bitter market is hot all the crazy 'currency' market and one of the root causes of illegal activities chaos, ICO crazy also from Bitcoin crazy.


Bitco currency trading place chaos and bit currency hot , Triggering the use of Bitcoin to support illegal financial activities, including pyramid schemes, fraud and other issues.

All sounds very ominous, and the reaction is swift...


With all the largest cryptocurrencies tumbling...


However, if traders read the full report, Caixin explains the regaulory crackdown is on ICOs and not Bitcoin...

The domestic exchange between all the virtual currency and the renminbi, represented by Bitcoin, Etherfax, Okcoin, will be closed within the deadline; but the regulation is not against the virtual currency itself, nor does it prohibit the one-on-one off-exchange of the virtual currency.

The bottom-line appears to be - just as we saw early in the year - China cracking down on capital outflows by disallowing the exchange of fiat currency into crypto via local exchange. But, most critically, they remain open-minded to the private exchange of virtual currencies. This is exactly what we saw early in the year when local P2P services jumped up to support this 'private' exchange away from 'official' exchanges.

It appears the future of bitcoin trading will be decentralized.

Buy the dip?

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bwh1214's picture

I don’t see any fundamental changes, I will continue to invest.  Like precious metals zero is not the correct allocation to crypto currency considering the current monetary and economic condition.


Video rebuttal to Chris Duane’s position that you should not own any Crypto Currency:


Duane Challenge Accepted, and a Wager
Creepy_Azz_Crackaah's picture


tmosley... paging tmosley...

Ghost of PartysOver's picture

China can not risk capital flight with the potential of Trump bring currency manipulation and tariffs into the picture.

BaBaBouy's picture

Amazing... You can still get 3 GOLD Physical Metal Money at this point...!

tmosley's picture

Kinda funny that the oldbugs are AGAIN dancing in the streets at this move, but China could do the exact same shit to them in a millisecond and the effect would be an order of magnitude worse.

I told everyone to avoid the ICOs for now, and that is what is being "killed" here. Chinks are just selling off their coins in a panic, not understanding that they aren't being made illegal. Bitcoin and co are going to be just fine.

UndergroundPost's picture

The giant sucking sound that you're hearing is not hurricane Irma, it's hurricane BitShit as massive wealth is being sucked into this fantasy vortex of speculation, which, when the final pull-out begins (has China started it?) will leave those holding the virtual coin bag unable to sell (no demand) and financially decimated, making the 2008 housing speculation bubble losses (which could at least point to a real asset at the end of the carnage) look tame in comparison.

TeamDepends's picture

No champ, what is happening is merely the going-into-the-weekend hammering that occurs every weekend like clockwork.

Bay of Pigs's picture

Please. I have to agree. 6-7% is not a "crash".

The headlines here are not only misleading these days, they are a fucking joke.

giovanni_f's picture

If an 8% correction qualifies as a crash to make the bitcoin_is_evil Antifa on ZH to collectively jerk off - so be it. Enjoy while it lasts, it could be over by Sunday morning. And may the dollar might be with you.

fx's picture

Funny that a 10-20 % up move in BTC never gets nearly the same attention by those people, who instantly yell "crash" at any random 5-10 % drop of this truly volatile beast.

Must be pure paradise for all the volatility-sellers to generate fresh income once some BTC-volatility contract becomes available. There ain't much to squeeze out of the VIx anymore to the downside.

The_Juggernaut's picture

I'm no fan of beaniecoins, but how is a drop of a few points a crash?  So hard to take anything finance related seriously on ZH anymore.

TheDude1224's picture

Bitcoin is a scam. It is a pyramid scheme...plain and simple. It is not original or creative. They were just a random scam that happened to be selected from many, and they will eventually crash to 0.

Read here for more details:


So It Goes's picture

Bill Fleckenstein:

"Crypto-currencies took a rather large hit, as rumors emanated from a Chinese news service that authorities might put a halt to trading in them there -- which seems quite likely.  What the ramifications might be, should China decide to do so, are far from clear -- although the ultimate destination of the price of these phantom coins is overwhelmingly likely to be not much north of zero."


Manthong's picture


“don’t see any fundamental changes,”

..except the bottom falling out and major governments declaring war on any approach to monetary independence.


Manthong's picture


..they can wipe out your bits and bytes in a heartbeat, but they have to bring the heavy hardware to get the metal.

.. wasted electricity and proof of work or...

heavy, bloody work to thieve................


PTR's picture

Buying stocks for capital gains is a ponzi as well.  You buy a share or two of stock hoping that someone else is willing to pay more so that you can sell your share(s) for more than you paid.  


I think it's like that for a lot of things in this world.

Pairadimes's picture

The case for short and intermediate term growth in crypto is strong, with reasons to buy the digital and reasons to flee the fiat both present. The long term is not so clear - until blockchain tech makes for simple, fast, anonymous and secure transactions and a critical mass of vendor adoption takes place, this is all pure speculation.

giovanni_f's picture

cryptos will be both, reguated to death (e.g., Bitcoin) and outlawed (e.g., Monero). Unfortunately it is the blockchain "movement" - which has deep libertarian roots - that has opend the door to total digital control by the deep state globalist Bilderberger-Taliban as well as the Wallstreet-parasites (e.g., Ripple, Ethereum, IOTA) that have alread hijacked blockchain (with a.o. numerous patents on something someone else has invented).

I hope the crypto community will find ways aound the machinations of those satanic central planning masons.Strange that the bitcoin-is-evil ANTIFA on ZH does not understand that gold can be outlawed by the stroke of a pen as well.

For the time being, Sprotts dictum about hits the nail: BTC can go to 100.000 $ or 0 $, both in no time.

tmosley's picture


Is this the new narrative against the coin that solves all the problems of Bitcoin?

giovanni_f's picture

that is up to you to find out

Oswald did it's picture

IOTA is an absolute joke.  It solves nothing, and currently does not work as advertised.  A central coordinator handles the transactions because the developers have not been able to come up with any sort of working network or "tangle" that is secure from even the most basic script kiddie attacks.  Actually IOTA marketcap is a pretty good indication of just how much dumb clueless money there is in cryptos at the moment

tmosley's picture

I'm sure you have sources to back up those assertions.

tmosley's picture

For the record, a downvote is not a source.

VD's picture

said the tmoron who couldn't back up his fake claims that zCash is indeed anonymous.


what a crypt0-muppet resident ass^ we have here.

tmosley's picture

That's rich, coming from the guy making the claim that it wasn't, on whom lies the burden of proof.

What a worthless scumbag^ we have here.

VD's picture

all talk from the resident crypt0-tr0ll who can't prove how he transacts in zCash "anonymously". 

i will gladly expose you upon you demonstrating to us how your zCash is perfectly anonymous-- but you won't dare take me up, so you'll twist and turn here and hang yourself..


as you expressed the same myopic overzealousness shilling silver oh so hard. when this crypt0-bullshit goes to zero what will you ever do?

tmosley's picture

You make the claim, you back it up, fuckface. That's how it works.

It's like you were born yesterday. Stop wasting my time with your idiotic demands.

VD's picture

you made the claim that zCash was 100% anonymous, and i'm asking you to prove to us how YOU transact it anonymously. you can't. it's obvious. you lie. you shill. you FAIL.

TruthHammer's picture

this kid tmosley, always trying to talk trash

VD's picture

he like your typical hysterical ANTIFA tmoron -- ask him to back up a claim and he talks trash and shits and pisses all over the place.

tmosley's picture

YOU made the claim, fuckface. I didn't. I don't know SHIT about zCash except that it is one of the "anonymous" cryptos. You picked the least developed of them and started beating a guy who made passing reference to it over the head with it. 

Ask me about Dash, fuckface. Ask me about god damned Darksend.

VD's picture

well, well, well, the truth oozes out.


so you spout off about zCash but you now admit that you don't know shit about it. WOW.


i'd say checkmate, but you're too dumb to acknowledge that. and certianly you won't own it.

tmosley's picture

>so you spout off about zCash

WOW, you got me. Woo-hoo.

Show me how much more you know than me about a random coin and PROOVE YOUR FUCKING CLAIM that it isn't anonymous.

Then go further and write a mathematical proof that it is impossible to create an anonymous coin, get it peer reviewed, then publish it. Or acknowledge the fact that it doesn't actually matter if one coin doesn't live up to its promise, as others probably do or at the very least will in the future.

Go ahead. You'll win a nobel prize and you can rub it in my face. I'll use bitcoin to pay for your flight to literally rub it in my face.

VD's picture

you brought up the "random" coin in question.


and math isn't even necessary to prove that you are unable to transact anonymously, not limited to the idiotic task of "mining" any of these "coins."


i promise it will one day make more sense to you than the silver positions you were hosed on.


and how will "Satoshi" ever (ie the NSA) collect his nobel prize? LOL


enjoy your weekend.

tmosley's picture

>and math isn't even necessary to prove that you are unable to transact anonymously, not limited to the idiotic task of "mining" any of these "coins."

Ok, so you don't have ANY evidence, just an assertion, correct?

Then shut your stupid fucking face.

tmosley's picture

So, how are my former colleagues doing, doxxer?

Mark of Zerro's picture

Me thinks Maidsafe.  Can do everything Ethereum can, plus has a datachain which provides near instantaneous transactions, plus it will exist anywhere you can log in.  PC, smart phone, etc.  All private and distributed.


VD's picture

bc when you log in from any device you're anonymous....

yvhmer's picture

You wrote: "Unfortunately it is the blockchain "movement" - which has deep libertarian roots - that has opend the door to total digital control by the deep state globalist Bilderberger-Taliban as well as the Wallstreet-parasites".

True on all counts. 

With regard to the libertarian roots, I am not so sure it is unfortunate. It just goes to show how much the government detests something that can be considered libertarian. Any thing that is free market can be seized upon by regulators, governors, do-gooders, humanitarian-war hawks, etc, and be co-opted to steer it towards being part of the system under the colour of fighting terrorism and making "us" safe. Quite in the vein of pissing on someones back and saying it's raining.

That particular knee-jerk respons of the governing bodies of our world, is most unfortunate.



PTR's picture

I'm placing my bets on the ingenuity of the people.  There's more of us than them, and more us's waking up and saying "Pfft" to whatever they say and believe we'll comply with.

Go peer-to-peer.

Placerville's picture

Holding BTC on 10/01/17 gets you an equal amount of Bitcoin Gold on the split. Crypto dividend and additional wealth just for holding BTC.

ejmoosa's picture

Holding a 1964 Kennedy half dollar in 1964 gave you 50 cents worth of US currency buying power and .3671 ounces of silver.

So today you have $6.65 in purchasing power.

The value of a dollar can go to zero, but the silver in that 50 cent piece will still have value in every other currency that still has value.

Now if Bitcoin goes to zero, I keep asking myself what will have in other currencies that still have value with my Bitcoin?

And all I can come up with is Zero.


Manthong's picture


good math..

so how much is my little 6.65 lb bag of pre-'65 100 dollar face value dimes worth?

I am looking at the little AGE and ASE I keep on the desk as reminders of value….

They each still weigh a troy ounce respectively.


zebra77a's picture

China 'bans' bitcoin all the time, so do other countries, YEARS AGO while Bitcoin surges on :

China Bans Payment Companies from Working With Bitcoin Exchanges, Sources Claim  (2013)

Bitcoin was knocked down but not out, and climbed in the subsequent years..

Thailand Banned it in 2013

Apple Banned all wallet apps in 2014

Over 100 countries and their respective banks have worked to try to stop it.

Cryptos have outlasted ALL of these bans, and now have major investment vehicles pouring in. It will require world wide martial law to stop cryptos (temporarily).

Zerohedge loves Crypto Articles because it sucks lots of passioned people in whatever they think will come to cryptos.  The Gold and Silver Stackers can get in a 'told you so' the critics can rail, and those that have a good idea about it can correct everybody.




Mango327's picture

BTFD, bitches!! Doom-Twats, ASSEMBLE!!!!

Yukon Cornholius's picture

In a world of trillionaires, 100B is hardly 'massive wealth'. I'll be surprised if BTC goes below $4k again.

illuminatus's picture

So far all the cryptos ( not bitcoin alone) are down 12 billion. Nowhere near 100 billion

plexodus's picture

spoken like a true visionaire. There are still too many fools falling for this esotheric substance, first this will go to 6 mayby 7K, then when there is still no 'normal world' wide acceptance the lights go on and the pale truth will be shown.

marysimmons's picture

China has a Communist government.  They like to control things.  They are not happy when they can't.  They can shut down ICO's in China and can shut down Chinese fiat exchanges, but they cannot control digital currencies.  Digital currencies are decentralized and here to stay.  They can't stop ICO's in other countries.  What the Chinese government is really worried about is the use of digital currencies for capital flight out of China, and they have good reason to worry about this.