Economy

Here's Who China's Bitcoin Exchange Ban Reportedly Won't Affect

Here's Who China's Bitcoin Exchange Ban Reportedly Won't Affect”

The decision will apply only to online trading and not to over-the-counter transactions.

The value of bitcoin will be scrutinised by investors around the world after the cryptocurrency plunged by more than 7 per cent on Friday amid rumours that China is planning to shut local exchanges.

Reuters was unable to confirm the reports.

Bitcoin fell 10%, from almost $4,500 on Friday, to $4,100 on Monday.

If you were wondering why the price of Bitcoin dropped faster than Ronaldo when he gets looked at by opposing defenders, turn your attention towards China.

In an unexpected move, the Central Bank of China ruled that all companies dealing in cryptocurrencies, not only bitcoin, will no longer be legal. Analysts say more activity is moving underground, where individuals can send virtual currencies to each other using private addresses, which serve like safe-deposit boxes. Don't forget to share your views with us.

Digital startups use ICOs to raise money to fund their development and to create digital coins that are necessary to access the applications they are building.

The people said that regulators will likely to have to tolerate noncommercial trading of virtual currencies.

The country's central bank has led a draft of instructions that would ban Chinese platforms from providing virtual currency trading services, according to people familiar with the matter. Officials said they don't plan to shut down cryptocurrency trading, but merely regulate it. Virtual currencies in theory can allow holders to bypass the traditional banking system to move money outside of China's capital-controlled borders.

Many experts believe that Chinese officials accelerated this process over the summer as Bitcoin price grew from $3,000 to almost $5,000, fueling market speculation by domestic investors, and driving Chinese Yuan value down as people started using Bitcoin to move funds in and out of the country, bypassing and disrupting traditional Chinese financial institutions.



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