Reports: Chinese Financial Regulators Order Bitcoin Exchanges To Shut Down

September 14, 2017 4:23 pm Published by

Financial regulators in Shanghai, China’s financial center, have ordered bitcoin exchanges to close, two business newspapers reported Thursday, following uncertainty about the digital currency’s future in China caused its price to plunge, The Associated Press reported.

The regulators gave verbal instructions to exchange operators to shut down, China Business News and 21st Century Economic Report said on their websites without providing any other details.

Without responding to questions about bitcoin’s future in China, the report said, the central bank said the cryptocurrency was traded without regulatory oversight and might be linked to fraud. The bank banned initial offerings of new digital currencies last week.

Bitcoin is created and exchanged without any bank or government involvement, the report said. Transactions allow anonymity, which has made bitcoin popular with people who want to conceal their activity, the AP reported.

Bitcoin can be converted to cash when deposited into accounts at prices set in online trading, the report said.

Rumors China planned to ban bitcoin has caused its market price to tumble 20 percent since Sept. 8, the news agency reported.

Interest in China in bitcoin surged last year after the price rose. A Chinese business news magazine, Caixin, said at one point up to 90 percent of global trading took place in China, the report said.

Trading volume has fallen as regulators tightened controls, the AP reported., Jack Durschlag

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