The biggest Bitcoin exchange in China, BTCChina said that they are going to halt trading as of Sept 30, and there would be a stop of registration of new users on Thursday 14. The shock announcement saw Bitcoin value slip after enjoying record highs.
Further damming news came for the cryptocurrency, shortly after Yicai the Chinese news outlet said that all bitcoin exchanges in China are to be shut down.
Dramatic Fall in Prices
Following the announcement Bitcoin prices fell sharply on BTCChina exchange, falling 18 percent at 20,510 yuan.
According to the founder of data analysis site Cryptocompare, Charles Hayter, lack of clarity from mixed messages has caused panic in the market following the Chinese ban.
Further Crackdown in Other Countries
Fears of a wider crackdown by regulators in other countries has wiped out almost $60 billion of cryptocurrencies total value according to Coinmarketcap an industry website. Whilst China has been the domineering country in Bitcoin trading by volume, Japan and Korea have also risen in importance.
Investors and speculators have flocked to domestic exchanges over recent years, who have offered free trading which has boosted demand and seen unprecedented growth this year. Chinese authorities in China have expressed their concern over potential financial risks as investors flocked to buy cryptocurrencies in what they say is highly risky and speculative market. Initial coin offerings of cryptocurrencies from January to June have contributed up to 2.6 billion yuan, by Chinese investors.
Bitcoin fell over 10 percent to $3,426.92 on the US exchange Bitstamp as the panic spreads with ethereum the main rival of Bitcoin falling 10 percent.
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