The global value of bitcoin has plunged in recent days amid speculation that the Chinese authorities will shut down the trading platforms following last week's ban on initial coin offerings, AFP reported. Reuters attributed the information to a government notice signed by the Beijing city group in charge of overseeing internet finance risks, which had been verified by a government source.
But despite the drop today, some Bitcoin traders remain unphased. Despite its halt to local trading, Shanghai-based BTCC, the world's oldest bitcoin exchange, said its other businesses, including an worldwide exchange and a bitcoin mining pool, remain unaffected. It was reported last week by Caixin that China was contemplating shutting down cryptocurrency exchange trading, and further confirmation of that order arrived today. The restrictions will reportedly only apply to trading on exchanges, not over-the-counter transactions. We apologize for the inconvenience.
But foreigners can still use its services in overseas markets, Shanghai-based BTCC said in a statement. In fact, a number of Chinese Bitcoin exchanges are already closing.
That said, the two biggest Litecoin exchanges in China, OKCoin and Huobi, are still operating as if nothing ever happened. ICOs are used by blockchain companies to raise funds by issuing coins and tokens.More news: Equifax Breach Under Investigation by NY Department of Financial Services
Anyone with $1m in bitcoin would have lost more than $363,000 (or £272,000) overnight.
The value of bitcoin collapsed below $3,000 (£2,200) at one point on Friday after Chinese authorities announced a crackdown on the digital currency. This time around the ICO market has seemed to affect bitcoin negatively even though it's not associated with these recent crowdfunding token investments.
Rumours also emerged late last week China was planning to shut local exchanges. Although that same exchange also encouraged customers to withdraw their funds "as quickly as possible".
According to the chief market analyst of Think Markets UK, Naeem Aslam, the Asian market is of primary importance to the demand and supply of Bitcoin. They're pretty cool, and you can customize by size and color. There's also a widget dedicated to our mining pool, displaying our hash power.