Bitcoin Crashes 35% In China: Beijing To Shut All Local Exchanges By End Of September

Tyler Durden's picture

Update: Confirming the other speculation, that China would halt all cryptocurrency exchange, Yicai reports that it is not just BTC China: 

  • CHINA MAY SHUT ALL LOCAL BITCOIN EXCHANGES BY SEPT. END: YICAI

To which the response from the Bitcoin Association of Hong Kong is: "if China restricts growth in bitcoin" it will drive business to us"

* * *

Yuan-denominated Bitcoin has crashed as much as 25% 35% in Chinese trading, plunging from 25,000 yuan to as a low of 16,000 on local exchanges BTCChina (and as low as 20,000 on OKCoin), following confirmation of last week's Caixin report that Beijing would stop cryptocurrency exchange trading. China's second largest exchange, BTC China, said that it would halt all trading on the platform beginning September 30, launching a liquidation panic.

In a statement released on Weibo, BTC China said that it would immediately stops accepting new account registrations on BTCChina Exchange. The decision was made after “carefully considering” Chinese regulatory bodies’ Sept. 4 announcement on preventing risks associated with token fundraising. A google-translated version of the statement:

China will stop all trading business on September 30th

 

Dear Bitcoal Chinese users: According to the September 4 issue of the "People's Bank of China Central Office of the Ministry of Industry and Information Technology Ministry of Industry and Commerce, China Banking Regulatory Commission, China Securities Regulatory Commission on the prevention and treatment of the risk of the issuance of the currency," the spirit of the document, adhering to the protection of investment risks, the maximum protection of users

 

The principle of interest, Bit Coin Chinese team by careful discussion, is to make the following decision:

 

1. Bit currency China's digital asset trading platform today to stop the registration of new users;

 

2. September 30, 2017 Digital asset trading platform will stop all trading business.

 

Beitou China's pool (pool) and other business will not be affected, continue to normal operation.

We apologize for the inconvenience. If you have any questions, please contact support@btcchina.com.

And on Twitter:

The immediate result was a sharp plunge in the CNY-denominated price of bitcoin on exchanges like BTC China and OKCoin:

While China no longer dominates cryptocurrency trading - it accounted for nearly 90% of all trading in late 2016 before Beijing launched a series of measures to limit participaton - and is now responsible for less than 40% of global volumes, the Chinese selloff has spooked global markets, pushing bitcoin sharply lower on international exchanges as well like Coinbase, where it was trading at approximately $3,600 last. 

A breakdown of global bitcoin exchanges by volume is shown below:

Also notable: as of this moment, China-denominated bitcoin is trading at about 17,000 yuan or just under US$2,500, indicating there is a nearly 30% arb between Chinese and offshore trading.

This isn’t the first time the bitcoin market in China has come under regulatory scrutiny. In early February, major exchanges suspended withdrawals of bitcoin and stepped up their scrutiny of clients after meeting with the central bank.

Emil Chan, vice-president of the Hong Kong Blockchain Society, said it would be difficult for regulators to outlaw bitcoin trading altogether. “There is no option to restrict cross-border sales of bitcoin. It is a smarter move to maintain the operation of the local exchanges if the central bank’s goal is to minimise the outflow of yuan.”

Still, the virtual currency is up more than six times from a year ago, with some participants convinced the bitcoin market is in a bubble. “In fact, the market was too hot. The action taken is an effective action to cool down the global cryptocurrency market,” said Chan.

Meanwhile, Leonhard Weese, president of the Bitcoin Association of Hong Kong, said if China continues to toughen up on regulations to restrict growth in bitcoin, it may drive the business to the city.

“People in China will be more careful about marketing these events, and a lot of that marketing activity will come to Hong Kong in the form of conferences and communities,” said Weese.

It remains to be seen if Chinese bitcoin fans will simply switch to other OTC/bilateral forms of trading, or simply take their trading to neighboring Japan and South Korea which remain eager advocates of trading in the crypto space.

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RedDwarf's picture

Nice reversal.  You didn't say they would not let go of their power easily, you said there was nothing stopping them from destroying bitcoin.  If you don't think the State is an all-powerful god, then you don't understand what bitcoin is and why it is impossible for the State to destroy, at least not without turning into North Korea and the 'elites' will be king of nothing.

ElTerco's picture

I don't get your use of the word peanutz. One of two things is happening here: (1) You are using the word just like Goldman uses the words muppets, because you are one of the lead con men of the BitCoin ring or (2) "When a true genius appears, you can know him by this sign: that all the dunces are in a confederacy against him.", which is sarcasm meant to say that anyone who believes this phrase is the real idiot.

tmosley's picture

Of course you don't understand. You are a peanut. Peanuts don't have brains for understanding. They exist only to be shucked and devoured.

T.Gracchus's picture

Gold- currency of kings
Silver- currency of nobles
Paper money- currency of merchants
Barter- currency of peasants
Debt- currency of slaves
Bitcoin- currency of wankers

Justin Case's picture

No comment:

 

 

 

 

new tmosley @ Winston Churchill Sep 6, 2017 7:40 PM
You ARE aware that there are anonymous cryptocurrencies, right?
So why aren't you supporting those RIGHT NOW?
I know the real reason. Sour grapes.
 
reply:
new VD @ tmosley Sep 6, 2017 7:48 PM
there is no such thing as anonymous crypto-fiat -- sorry, it's impossible. you may think it is, the "coin" may promise it is, but i assure you it is anything but.

new tmosley@ VD Sep 6, 2017 11:17 PM
>keep avoiding the questions
Why are you such a peice of shit? You are the one making outrageous claims, you are the one that has to back them up.
>explain to us exactly how you go about buying "anonymous" Tulipcoins. you do that, and i guarantee you that i will expose you.
Just fucking mine them.
>but you're scared
Hahahaha, no, you are insecure. I am fully secure in the accuracy of my thesis. It is a simple update of my old one that pointed towards silver as being the big winner. You should try updating your own thesis to account for new data.

tmosley's picture

Yes, you can always rely on me to tell you who is stupid.

For example, you are stupid. Pure idiot.

RedDwarf's picture

"I wouldn't be surprised if gov't forces people to trade bitcoin through banks later given Dimon's comments."

You seem to think governments are all powerful.  They are not.  To even attempt to really stop BTC you need to go totalitarian, let alone trying to make people use it.  If you go totalitarian your nation will eventually collapse into a 3rd world shithole and/or you will have a revolution.  So yeah, governments can do this, but not without the consequence of eventually destroying their own power base.  If you thought enforcing a ban on drugs was difficult, it's nothing compared to this.

As Ayn Rand said, "We can ignore reality, but we cannot ignore the consequences of ignoring reality".

Justin Case's picture

The following are 20 signs that the United States is rapidly becoming a totalitarian “Big Brother” police state….

#1) A new bill being pushed by Senators John McCain and Joe Lieberman would allow the U.S. military to round up large numbers of Americans and detain them indefinitely without a trial if they “pose a threat” or if they have “potential intelligence value” or for any other reason the President of the United States “considers appropriate”.

#2) Lawmakers in Washington D.C. working to create a new immigration bill have decided on a way to prevent employers from hiring illegal immigrants: a national biometric identification card all American workers would be required to obtain.

#3) Barack Obama is backing a plan to create a national database to store the DNA of people who have been arrested but not necessarily convicted of a crime.

#4) Just to get on an airplane, Americans will now have to go through new full-body scanners that reveal every detail of our exposed bodies to airport security officials.

#5) If that wasn’t bad enough, the Transportation Security Administration has announced that airport screeners will begin roving through airports randomly taking chemical swabs from passengers and their bags to check for explosives.

#6) Starting this upcoming December, some passengers on Canadian airlines flying to, from or even over the United States without ever landing there, will only be allowed to board their flights once the U.S. Department of Homeland Security has determined they are not terrorists.

#7) Organic milk is such a threat that the FDA has been conducting military style raids on Amish farmers in Pennsylvania.

#8) An NYPD officer has broken his silence and has confessed that innocent citizens are being set up and falsely arrested and ticketed in order to meet quotas.

#9) A growing number of police departments across the U.S. are turning to mobile camera systems in order to fight motor vehicle theft and identify unregistered cars.

#10) For decades, Arizona has been known as “the sunset state”, but lately many frustrated residents have started calling it “the surveillance state”.

#11) Judges and police in Florida have been caught using “secret codes” on tickets in the state of Florida.

#12) An extensive investigation has revealed that between 2003 and 2007, that state of Texas quietly gave hundreds of newborn baby blood samples to a U.S. Armed Forces laboratory for use in a forensics database.

#13) A 6-year-old girl was recently handcuffed and sent to a mental facility after throwing temper tantrums at her elementary school.

#14) One 12-year-old girl in New York was recently arrested and marched out of her school in handcuffs just because she doodled on her desk.

#15) In Florida, students have been arrested by police for things as simple as bringing a plastic butter knife to school, throwing an eraser, and drawing a picture of a gun.

#16) When a mother on a flight to Denver spanked both of her children and cussed out a flight attendant who tried to intervene, she suddenly found herself handcuffed and headed for prison.  Why?  She was charged with being a domestic terrorist under the Patriot Act.

#17) A new global treaty may force U.S. Internet service providers to spy on what you do online.

#18) A leaked Obama administration memo has revealed plans for the federal government to seize more than 10 million acres of land from Montana to New Mexico.

#19) 56 percent of Americans questioned in a CNN/Opinion Research Corporation poll said that the U.S. government has become so large and powerful that it poses an immediate threat to the rights and freedoms of ordinary citizens.

#20) But one other recent poll found that 51 percent of Americans agree with this statement: “It is necessary to give up some civil liberties in order to make the country safe from terrorism.”

ian_crypto's picture

Big companies desperately hoping for blockchain without Bitcoin is exactly like 1994:

"Can’t we please have online without Internet?"

 

You can't disassociate Blockchain from Bitcoin. If you think you can, you don't understand what blockchain is.

Rhetorical's picture

Fucking right it will 300% in one year is fucking bogu should of been five if you had sold at the top. But me im happy with my tntn Obs Omg Ark and some Neo that i will be picking up dirt fucking cheap

NoDebt's picture

"Bitcoin has proven its trading will just move elsewhere."

I upvoted you because you are right BUT.... you just lost CHINA.  ALL. OF. CHINA.  Poof, gone.  You think that's just a flesh wound?  

I remember when we were having Bitcoin discussions on here many years back I took an educated guess that the exchanges were the weak link, easily banned/closed by governments who don't want competition against their fiat.  And, sure enough, here they are shutting down the exchanges.

BarkingCat's picture

These bitcon fan boys don't realize that while the various governments might not be able to stop bitcoin exchanges or private transactions, they can easily stop legal money transfers into bitcoin as well as legal commerce using bitcoin.

This would make bitcoin a black market currency and one used only for illegal activity.

tmosley's picture

In the fully authoritarian world that you describe, surviving will be an illegal activity.

BaBaBouy's picture

Yes, Theres an Actual word for it; Globalism...

Stinkytofu's picture

when kryptocurrencies are outlawed, only outlaws will ha..........

fiftybagger's picture

"This would make bitcoin a black market currency and one used only for illegal activity."

 

Like the one that funds the 1 trillion a year illegal drug trade?  Oh my bad, that the dollar and Wallstreet banks.

tmosley's picture

Less of China than you think.

Russia tried banning it already. Didn't work. Had to backtrack, hard. The Chinese will be back, but they will be buying back in around $30K. China just cost themself the crypto crown.

mtl4's picture

These goverment actions are just trial balloons so far.........wait until times get tough and then see how they react.

therover's picture

China will buy back in ? Are you nuts ? If anything they will create their own. Backed by something. Hmmm...wonder what that something is ?

tmosley's picture

"Backing" is for systems requiring trust. Crypto is trustless.

And yes, they will buy back in. China is not an island.

funthea's picture

Why buy back in to BTC at $30k as you say, when you could have your pick of any other alt coin equally on par with BTC for a fraction of the price? Remember "substitution" ?

tmosley's picture

The same reason they were buying it at $3000. Bitcoin has the network effect. They have the miners securing the chain. Loads of security.

TheReplacement's picture

China has not been lost.  Owning and trading and mining are all still legal there.  The only thing banned is the exchanges.  Those exist all over the globe.  Taking that into account, I think you are seeing the fear trade in China now by the uneducated house wives who previously got burned in the stock market and so on. 

Still waiting to see if Cisco, Google, and Microsoft can figure out a way to block bitcoin on behalf of China.  After all, China's great digital wall is American made.

Bay of Pigs's picture

Judging from their collective behavior politically speaking both here and abroad, I wouldn't count on any of those companies helping anyone on financial or privacy issues.

mkkby's picture

This is the end for shit coin. I've been saying for a year now -- all gov has to do is forbid banks from allowing purchases/redemptions.

That means business will never accept them, because they want an easy conversion to cash. There won't even be a black market, because even drug dealers want cash.

I do believe banks will come up with crypto currencies of their own. With their backing they will take over the market.

IH8OBAMA's picture

Hey cryptonuts, try using a little leverage in your Bitcoin trading.  Maybe 10 or even 5 to one would be good.  LOL

I suggest moving to Florida or Hawaii or San Diego.  There's no winter for the homeless to deal with there.

Raffie's picture

Buying 100 Litecoin....

Gaius Frakkin' Baltar's picture

Real markets go down sometimes.

ET's picture

There will be a flight into dollars and short-term bonds first as they try to cash out and then they will pour into Precious Metals.

It's not a direct conduit from crypto to Precious Metals. To front run the crypto gamblers, getting physical Gold and Silver would be smart.

ET's picture
Vote up!

23
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-3 ET   illuminatus Sep 2, 2017 6:54 PM

I already sold my cryptos (litecoin) when it hit $93 and took delivery of Precious Metals.

The time is now to convert cryptos to Hard Assets, especially the suppressed Precious Metals, before they are unattainable.

https://sdbullion.com/gold/american-gold-eagle/1-oz-gold-eagle-coins



Vote up!

5 Vote down!

-33 tmosley   ET Sep 2, 2017 7:24 PM

Why do you feel the need to tell such obvious fucking lies? Do you not have any actual arguments in favor of your position, and have to resort to this type of trolling instead?


ET's picture
Vote up!

1
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0 ET Aug 30, 2017 4:12 PM

Time to sell crypto before it crashes like it did a few years ago.

Whoppercoin told me all.

ET's picture

?

Vote up!

2

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0

ET Aug 30, 2017 11:39 AM

The time to trade cryptos for Precious Metals is coming.

 

Physical Gold and Silver have seen their prices rise from paper money being traded in but not from cryptos yet.

ET's picture

 

Vote up!

16
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-5 ET   Honey-Badger Aug 31, 2017 4:10 PM

The race for Physical Gold and Silver is on.

The loser will be the one holding paper and digital claims for assets, especially crypto.

Exchanges will take a bank holiday before cryptos are banned under Trading with the Enemy Act. Crypto without any cryptograpic qualities has no reason to exist. All we see is momentum and its momentum is slipping.

ET's picture
Vote up!

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0 ET   Swampster Aug 31, 2017 4:47 PM

I am going to write down for you a bunch of letters and numbers that can move around the world and be observed by the authorities.

In return, I want your Gold Coins.

Good luck with that trade.

tmosley's picture

Your lie is that you ever owned LTC. You have always railed against it since day fucking one, then, when the price falls hard one day, you say "I sold at the top, nah nah nah na boo boo!"

You expect ANYONE to buy that shit?

ET's picture

I did own LTC. I bought it at about $40. I considered it part of my market research. It was a small sub-$1k amount to avoid any Suspicious Activity Report. I figured it would be the last major crypto to go parabolic.

That is when I discovered how difficult it was to sell LTC and transfer the money into my bank account. Multiple excuses. But I managed to cash out after a week. Never will I go into crypto again.

People with more than $10k will have an extraordinarily difficult time getting their money out because of the SAR that must be filed with the Treasury and multiple people withdrawing such a large sum might collapse the exchange, threatening the entire enterprise (scam).

tmosley's picture

Yeah, you have to say those things BEFORE you claim to have sold it and BEFORE it goes up for your word to hold sway.

Also, you are a total fucking idiot. I have cashed out crypto before and had money transferred to my account within 24 hours. If you aren't lying, then you just chose a shitty exchange. Probably coinbase, which the crypto people have been warning against for MONTHS.

factorypreset's picture

So what exchange are you using?  

Raffie's picture

that exchange only carries btc/eth I need LTC. 

In the near future that exchange will carry LTC, they said they will. But does me nmo good now LOL...

tmosley's picture

That's fine. Just move it into your Exodus wallet and you can trade for LTC from there. Or move it to Bittrex or GDAX (that's the exchange with free trades, right?). Myself, I only do a tiny bit of trading. Mostly just positioning.

Raffie's picture

I could do GDAX but takes 4 business days to move USD into the exchange to use it.

PPl on reddit saying over 7 days and still moeny not in gdax so thinking bank wire xfer

FreeShitter's picture

Not only is he a liar, a spammer, and a moron (he stil thinks crypto people are piling into gold atm), he doesn't even know who is who between people. 

ElwinCthulhu's picture

ODDLY ENOUGH I had the exact same experience this week.  Figured I'd try the crypto thing out with a few hundred USD in cash.  Used a cash-machine to buy bitcoin, went through two exchanges for a little known altcoin, later settled on Monero.  Had two wallets on my PC, the whole shebang.  And when all is said and done: 1) I had lost 25% of my initial cash to exchange fees and 2) I can't create a bank link on Kraken to withdraw (Kraken absolutely sucks donkey lungs.)  So I am stuck.  God has a great sense of humor teaching me a lesson with some loose cash.  After I figure out how to get the remainder back (losing another 10-20& in the process) I'll go back to PM.

tmosley's picture

Just sign up for gemini like everyone has been telling you to do.

Buying BTC through an ATM is like buying gold off an infomercial. Of course you are going to get ripped off! Everyone else gets dollars in for maybe a 1% fee.

SILVERGEDDON's picture

tmosley is prolly asking the POTB that covered his all expenses paid trolling why the blind sided him again in the middle of his enthusiastic pumping campaign, just like they did in the big silver ramp up. 

Answer - " It is in our nature to eat the weak, and our servants. How could you expect anything different ? "

sickavme's picture

Annnnnnndddddddd....

 

 

Splat.

DieselChadron's picture

hahaha!!!

would you like ketchup with your dick Mr McAfee??