Matt Roszak, the chairman of Washington-based Chamber of Digital Commerce, an industry advocacy group, and an investor in BTC China, said he anticipates that the exchange will resume operations by the end of the year.
All Chinese bitcoin exchanges have been told to announce by midnight Friday when they will shut down, according to prominent Chinese business publication Caixin. New user registration shall be stopped immediately after the announcement. Starting now, exchanges will gradually be discontinuing pairings of digital assets against RMB.
Bitcoin is now down almost 30% from its peak at above $5,000 on September 1.
All trading exchanges must by midnight of September 15 publish a notice to make clear when they will stop all cryptocurrency trading and announce a stop to new user registrations.More news: Credit Bureau Websites and Phone Lines Overwhelmed After Equifax Breach
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If Li's comments reflect the thinking of the Chinese authorities, that suggests that this is much more than a temporary halt to Chinese Bitcoin trading. The future of bitcoin as currency will be more controlled and regulated by governments which will eventually reduce the volatility.
The price of a single bitcoin BTCUSD, -10.12% tumbled almost 8% on Thursday to $3,565, and has fallen nine of the last 13 days.
A source at OKCoin who requested anonymity says the company is considering peer-to-peer transactions, but it's not a certainty because current regulations are vague. Chinese regulators also made a decision to close domestic trading cryptocurrency platforms, Caixin reported, citing unidentified people close to the nation's internet financial risk prevention team.
As the ban on trading all cryptocurrencies for yuan becomes realized across the country, many of China's bitcoin miners, which account for at least two-thirds of the total bitcoin mining hashpower globally, could find themselves without a way to sell their bitcoin.
The selloff accelerated on Tuesday, after J.P. Morgan Chase CEO Jamie Dimon called the cryptocurrency a fraud that was "worse than the tulip bulbs" and that "won't end well".