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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tmosley's picture

If you put a peanut on your shoulder, he would shit himself just to spite you for making such a reasonable post.

syzygysus's picture

Meh, just a minor bump down after exponential up.

 

Cryptos aren't my thing....I may bash them for fun....but they are here to stay and likely BTC is going much much higher.

crakerman's picture

say... i have some ponzium coin i would love to trade for your silver.

 

Deal?

dark pools of soros's picture

can only get two gold coins and a bag of silver for bitcoin now? damn must be game over

Oyster's picture

Still not low enough. C'mon $3000. Let's see a nice 61.8% retrace from the July low just 2 months ago. Thanks, China.

YUNOSELL's picture

Calling all Tmosleys? Where are you my man?

Exponere Mendaces's picture

Bitcoin has been through way worse. As I said before, even if the Chinese exchanges stop trading, its a GLOBAL asset.

But most of the (g)oldfags cackling with glee forget that point. Good, because while we're ripping circles around their "phyzz", they'll feel all comfy and secure thinking that Bitcoin is "dead" again.

Anything China "bans" ends up doing quite well - so bring it on. South Korea and Japan have no problem trading BTC. I bet some enterprising chinese citizens won't have any problem getting a "friend" to open an account there either.

But have your old-man coughing fit, hacking up gobs of green goo as your skeletal smiling rictus crinkles your dry skin.

Bitcoin will bury you.

 

_ConanTheLibertarian_'s picture

Goldbug here. I'm open minded enough to also own some cryptos.

+1 you got some good points

Infinite QE's picture

Yeah, it's a global arset with the majority of pumping coming out of bots in China. Sorry to inject fact into the delusion.

 

dark pools of soros's picture

i got these shiny gold coins for these $4000+ bits... i guess gold is a delusion too??

when's the next $20 gold 'surge' comming? put on your seat belt old fart

tmosley's picture

Vague assertions aren't facts.

Infinite QE's picture

Sure. Go look at trading patterns.

Infinite QE's picture

And help a brother out here.

I've made 3 fortunes in my lifetime.

One selling a tech company in the early 90's.

Second shorting the dotcom scam.

Third figuring out what QE was and launching with it.

Now, I have some intrique to make a 4th.

How can I short Bitcoin?

 

tmosley's picture

>How can I short Bitcoin?

We've told you a hundred fucking times.

Fahq Yuhaad's picture

Why do you think Bitcon hasn't already gone back down to $1?

11b40's picture

If you are so brilliant, why do you need help when just a little digging will answer your qyestion.

Cutter's picture

Exactly, we are begging for the introduction of options so we can buy puts. It would be the best trade I've ever seen.

Infinite QE's picture

By the time they get options on futures live for Bitcoin, it will be buried next to TulipMania in the record books.

 

Oyster's picture

They can just use a VPN or the TOR browser. Done. Bitcoin in USD is only down 4% right now. We're aren't even at the 50% fib retrace using the July low two months ago. Maybe the computer nerds are all still sleeping in the USA and we'll see more of a waterfall later today.

saldulilem's picture

Won't you need a US bank account?

Anopheles's picture

So tell us, how do you get your cash in or out of Bitcoin from within China?  Localcoin traders also have the same problem as everyone else.  No access to exchanges within China.. 

Are they going to be smuggling cash in and out of the country?

tmosley's picture

Who cares?

If the chinks want to get away from their despotic government, they can take the bitcoin they already own off the exchange into their own wallet and "go on vacation" and live the rest of their lives in comfort anywhere else.

This is why the price hasn't crashed to zero in China. Lots of people will be taking delivery of BTC.

This isn't the end, even as the treacherous goldcucks want it to be. Not even close. We've got 722 years until BTC ties the longest lasting known example of a ledger currency. Longer, really, since said ledger currency formed the basis for the BoE, which obviously still exists.

RumpleShitzkin's picture

I find most of your BTC arguments interesting.

I don't get why this has to be a crypto vs goldbug thing, tho.

My basket has room for all kinds of eggs. I also like to have more than one basket.

tmosley's picture

Goldbugs make it that way. They worshipped the golden calf, and had to drink the bitter waters as a result. As a result, they are a deeply bitter people.

iamrefreshed's picture

You might make sense but you are part of "they".

DjangoCat's picture

This dip is pretty good if you are thinking of getting your feet wet.  You must understand that there are very powerful forces trying to crush this thing and therein lies the risk.  The war is on.  Bring it.

The more of us who support it, the harder for them to win.  They are not forces for good.

Real democracy at work.

I am a Man I am Forty's picture

You can't stop bitcoin. You can debate all day what one bitcoin is worth but you can't stop it.  Shutting down exchanges will only temporarily slow things down.

Fahq Yuhaad's picture

An unstoppable nada is still nada.

I am a Man I am Forty's picture

a world wide payment system and digital currency is not nada

DjangoCat's picture

Trying to figure out Bitcoin by looking for some asset backing it is like looking for the light switch under your bed.  It is not there.

The value is in the use.  It's the network effect stupid.

That is why Google and Facebook have value.  Facebook would be nowhere if only 10 people used it.  With millions of deluded Facebookers, the stock is to the moon.

Honest Sam's picture

What has mucus got to do with this?   

Are sure you shouldn't be on WebMD?

Crypto Kevin's picture

Do you really think they are bashing and banning bitcoin for your protection or because they're terrified that it's a better and more decentralized technology than government fiat. Before you bash bitcoin and say it's a ponzi ask yourself if the bankers and governments are trying to protect the people or themselves. They're terrified of losing control over the world's money supply.

Fahq Yuhaad's picture

On the contrary, they are laughing themselves stupid at the peons draining their USD and CNY off into Bitcon, the series of digital nadas that is backed only by the non-existent Satoshi Nakamoto's farts.

tmosley's picture

Here we have a retard who thinks that when you buy something, the money you use for it disappears.

PROTIP: the only way USD or CNY disappear is in a Joker style bonfire, or via central bank action.

DEMIZEN's picture

it does when you buy a nothing. you know.. like shit coin.

tmosley's picture

You really think that? Go to a random person and buy nothing from him for a dollar. Does the dollar disappear, or go into that person's pocket?

I know you can't help being stupid, but you could at least spare us your inane commentary.

DEMIZEN's picture

you have no idea what happened to that dollar.

tmosley's picture

You are a fool who can't accept when he is wrong, and clings bitterly to obvious falsehoods.

SAD!

DEMIZEN's picture

dude I undertand you lost some monies so i ill pass on my counterpunch. if you want to cry on my shoulder its ok, fine with me.

Fahq Yuhaad's picture

You would do better to limit yout infantile babblings to no more than one comment per thread.

tmosley's picture

>Stop pointing out our lies and hypocrisy!

No.

Fahq Yuhaad's picture

"...or via central bank action."

So you still think that Bitcon was created on Halloween 2008 by a philanthropist calling himself Satoshi Nakamoto (translation: "central intelligence"), who does not even exist?

onthedeschutes's picture

Blockchain is central bank kryptonite...IF they cannot control it...they will do whatever they can to take it down.

lil dirtball's picture

Blockchain is the central banks new tool, dumbass. How many clues do you need?

Infinite QE's picture

Some are slow on the uptake. Think Yugo.

 

onthedeschutes's picture

The central banks do not control it...yet, fukstick.  But they are working on it.

lil dirtball's picture

They created it, moron.

Prove me wrong. Tell me it was some anonymous hack just trying to save humanity.

LOL. You people crack me up.