Call the clock, because cryptocurrency exchanges are dead in China! Wednesday was the last day for the Chinese cryptocurrency exchange. It was an end announced by the ban adopted back in September, but it’s always hard to say goodbye to things that you’ve got used to.
From now on, it is illegal for Chinese mainlanders to exchange digital money unless they operate offshore. And most likely, they won’t think twice before doing so.
A lot of investors, seriously affected by the newly-imposed restriction
Huobi, one of the top three Bitcoin trading platforms, stopped all bitcoin trading in mainland China and have moved to Singapore, Hong Kong, and South Korea, informs Forbes. To make things worse for users, Shanghai-based BTCC announced after it stopped trading that it will perceive a service fee for withdrawing existing funds by Friday.
In just the last two years, cryptocurrencies have become a force to reckoned with. On Thursday, Bitcoin surpassed the $7,000 barrier, having a 600% increase in 2017. From hedge funds to wealthy people, all have started investing in digital currencies, a consciously taken risk, considering the fact that they are often created out of thin air. The Chinese policy to regulate gambling set Beijing monetary policymakers off this summer to shut down exchanges and initial coin offerings.
ICOs were also banned, despite generating hundreds of millions of dollars. This led Chinese investors to directly invest in start-ups by purchasing the tokens they issue in those ICOs, while buying cryptocurrencies in offshore accounts is also a good way to survive this harsh times.
The price wasn’t affected, despite the new regulation
When China announced the ban in September, the price of a Bitcoin dropped from about $5,000 to $3,300. Now, despite the decision fulfilled by the Chinese government, the value of the digital currency has more than doubled.
Even if it banned cryptocurrencies exchanges, China’s regulators said it was not giving up on blockchain technologies.