In the past, the Chinese government has banned Bitcoin transactions at banks and retailers, and more recently it banned ICOs, Initial Coin Offerings.
The news report by Caixin read, "Chinese regulators ordered a halt to all virtual currency trading platforms in the country, acting to further rein in risks related to cryptocurrencies, Caixin learned from a source close to regulators". The country makes up 23% of Bitcoin trades and interestingly some of the world's biggest Bitcoin Miners are from China.
While Beijing's motivation for the exchange ban is unclear, it comes amid a clampdown on financial risk in the run-up to a key Communist Party leadership reshuffle next month.
If the Chinese government ultimately decides to handle the issue privately with its local trading platforms by cooperating with bitcoin exchange as it has done since November of 2016, bitcoin price will likely be able to recover beyond the $4,500 mark towards new all-time highs, given the successful short-term scaling of the bitcoin network through SegWit. "Old users will definitely still trade, but the entry threshold for new users is now very high".More news: Top 25: TCU Horned Frogs wear down Arkansas Razorbacks
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For those who are looking to take advantage of Bitcoin and other cryptocurrencies price fluctuations, Some brokers provide traders with instant access to trade Bitcoin, Bitcoin Cash, Ethereum and other cryptocurrencies.
China's influence on global markets is not restricted to just traditional currencies, with the country's biggest exchanges accounting for a fifth of all transactions over the course of the past month.
Bitcoin has jumped about 600 per cent in U.S. dollar terms over the past year, part of a broad surge in virtual currencies that has fuelled concerns of a bubble. The Chinese bitcoin exchanges have also confirmed that they have not received any such intimation from the authorities and this has helped the bitcoin prices to bounce again from the $4000 region for the second time in a week.
OKCoin, BTC China, and Huobi, the largest Bitcoin exchanges in China, told Bloomberg on Monday that they haven't been informed by authorities about any ban on trading.
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