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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T.Gracchus's picture

You call anyone who questions Bitcoin a peanut....and yet you really believe in the idea of a man called Satoshi Nakamoto, who invented Bitcoin single-handedly, only to disappear into thin air?

I cannot dispute the fact that Bitcoin is presently valuable, but to believe all that Satoshi shit makes you either incredibly naive or certifiably insane. If something is built on a lie, then sooner or later that lie will be exposed.

Bitcoin still rides high ( though less than just a little while ago), but when you start delving into the back-story of the mysterious Mr Satoshi- you just start looking like a clueless dick pumping something (btc) that even a child can see is implausible in its alleged conception.

IH8OBAMA's picture

Bitcoin is just a massive pump and dump.  We all can see who is doing the pumping here.

buzzsaw99's picture

it's true then, dimon is chinese.

Philo Beddoe's picture

Did you see his cruffrinks? 

turnoffthewater's picture

So the Chinese close down trading crypto and when dimon is finished buying then the Chinese issue their gold holdings? Checkmate

floosy's picture

Hmm Now where have I seen another chart like this...

 

http://www.xe.com/currencycharts/?from=XBT&to=USD&view=2Y

BadSpybot's picture

Interesting comparason. I've also seen futures charts, where, after a crop scare, prices fall back to base.  I would probably buy a bit coin or two at 1200 or lower.

Infinite QE's picture

Paging all resident ZH Bitcoin pumpers: Man the bilge pumps. Gotta pump this up or its going to its intrinsic value. Zero.

 

Deep In Vocal Euphoria's picture

incoming wall of text with explanation!

buzzsaw99's picture

going to zero right alongside the usd.  (and the 10Y yield)

Exponere Mendaces's picture

Don't spray your shorts just yet (g)oldfart.

Everything China "bans" ends up being a great long play. BTC is a global asset, but you retards keep forgetting that - must be all that gold dust in your ossified grey matter.

Keep 'tardin, its what you do best.

Infinite QE's picture

Keep pumping shill. Bet you've already unloaded most of yours and need more suckers, I mean investors, to sell the rest to.

Hopefully ZH is keeping track of your IP address so the SEC can lay waste to you when this is all said and done.

Burltron's picture

Did you really just say that? Traitor.

tmosley's picture

Exactly. He should be executed for that comment.

Not even kidding. What a fucking peice of shit.

Burltron's picture

Unreal. That is lifetime-ban worthy in Fight Club.  Bootlicker.

Infinite QE's picture

Right. Being part of a giant scam is way different than being a Jamie Dimon. What a lot of fucks you are.

Infinite QE's picture

Right. I bet you'd have a hard time killing an ant.

Aiding and abetting a major fraud like this cyrptocoin madness should be prosecuted to the fullest extent of the law. Otherwise you're just a criminal like Jamie Dimon and the rest of their il.

I've willfully forgotten more about securities and security law than the entire Shitcoin contigent on ZH.

So go clean up your puke. This crash is just starting.

 

 

fredquimby's picture

You Sir, are a first class cunt. 

RumpleShitzkin's picture

That was some toady shit to say, chief.

shimmy's picture

Signs of a stable alternative currency and not the 21st century version of tulips. Crypto adoption is right around the corner!

Kina's picture

Plenty of warnings around.

Take your profits and don't go back.

DEMIZEN's picture

LOOL

i want to start my own fucking shit coin. ponzium sounds like a good name.

fredquimby's picture

You can numb nuts. Go to cryptocoincreator.com and get it going.

 

saldulilem's picture

Let's do the limbo!

crakerman's picture

Someone will get killed - The Jew

DEMIZEN's picture

i hear they sold jesus for 30 bitcoins

tmosley's picture

That's a lot better than 30 silver coins, tbh.

Jtrillian's picture

Watch what BTC does at 3500.  It has common fib retracement levels there.  Could bounce. 

If not, the net level of support is around 3000 using the last known high and a fib level. 

If it doesn't hold 3000, the party may be over.  Doubtful though.  Blockchain is here to stay.  Good buying opportunity before it moves to 10k. 

Folks who poo poo BTC do not typically understand how it works or why it has been successful thus far.  I maintain that there is nothing wrong with owning both crypto and PM's.  Smart investors diversify.

The central planners's picture

Cryptos always has been gambling money nothing else.

RumpleShitzkin's picture

Stick with stawks, then.
Totally safe and solid.

DjangoCat's picture

Well I like PMs and was working on acquiring some online using my Paypal account.  The transaction was refused, so I pulled out my trustee Visa card.  Whadyano, that was refused too.  My, my, TPTB don't want me buying PMs.  So as a last resort, I pulled out my phone and paid with Bitcoin.

No problem.

jcaz's picture

Insert "tulip" every time you said "BTC" and you just described every mania in the last 4 billion years;

Oh I know- "But... but... but... THIS time is different!"

lil dirtball's picture

> Folks who poo poo BTC do not typically understand

Go fuck yourself ... we understand just fine.

Jtrillian's picture

Those who cannot argue the FACTS will always resort to personal attacks.  If you think that you have an argument against bitcoin, then state your case.  Otherwise you are wasting space.  

lil dirtball's picture

> then state your case

I thought I was pretty succinct.

> If you think that you have an argument against bitcoin

It's been hashed and re-hashed already - do you have a comprehension problem? I wasn't the one who 'poo poo'd' other people to begin with.

You bitshit people are obviously geniuses, anyhow. You should mindmeld this shit without me having to use the keyboard.

Wrenching Away's picture

At least someone here gets it.

Seasmoke's picture

It's been a fun 3 years. But Maybe they should finally go back to buying Gold as they have done for the past 10,000 years. Plus apparently the more they demand the lower the price of Gold goes.

DEMIZEN's picture

everythng is overbought. gold was less than 200 just a decade and some ago.

Beowulf55's picture

And we were not 20 Trillion in magic paper debt either........

DEMIZEN's picture

i can fix that with a sharpie.

MANvsMACHINE's picture

Decentralized exchanges are next. No better sign that the crypto space is real than when your friendly government wants to keep it from you. Does that make sense to the ZHers or have you all become a bunch of weak knee'd sissies?

DEMIZEN's picture

i am all for crypto cash and will buy into it when i can have my coins with a click and password anywhere in the world anytime and instantly, no names or forms asked at relatively stable exchange rate.

DjangoCat's picture

You have that now man.  Use the Trezor hardware wallet and walk into any internet cafe and safely move your money.  Or use it with your phone.  That is the whole point.  You are your own bank.

tmosley's picture

The peanut gallery loves Jamie and communists. They HATE competition.

Mr T's picture

TMosley,  once I boiled away all liquid parts of bitcoin I feel I have come to 2 immutable truths on bitcoin

1)  there is a 21 million coin cap. 21 million and only 21 million can be created. Hardwired.  Absolutely only 21 million. No doubt a limit of 21 million. I believe this.

2) each coin is infinitely divisible.  I do not write it is now, but "Hardwired" into this coin it can be.

Now my opinion, much of any Fiat is psychological, so much of the crypto hype is to harness humans baser instinct as the chosenites know full well.

This bitcoin or some form of it will be the global currency. I opine that buying bitcoin to increase your stack of Fiat is repugnant.

Debt notes.  Granted you can buy physical assets with them maybe lots, but...

That does not make you special.

Trust me if I stood in front of you and put a peanut on my shoulder you could not knock it off. Watch how you lump people into galleries