Following up on the announcement that it made earlier in the month, BTCC, one of the largest Bitcoin exchanges in China and the world, has stopped accepting yuan and digital asset deposits.
The exchange had previously announced that it would be shutting down its trading operations on September 30 due to the Chinese regulators announcing that they would be banning Bitcoin exchanges.
It also announced that it will stop yuan and digital asset withdrawals by October 31, marking a total shutdown of the business.
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The crackdown is the result of the authorities fearing that cryptocurrencies could be used by some as a means of money laundering, and BTCC has joined other Chinese cryptocurrency exchanges in announcing the shutting down of its mainland businesses.
This has led to a crash in the price of Bitcoin, from close to $5000 to below $4000 currently. Chinese citizens have also been banned from investing in initial coin offerings, as the authorities believe that these are unsafe investments for the general public.
Bitcoin and the general cryptocurrency market are struggling to get the required recognition from major banks and other governmental organisations as the industry suffers from a lack of regulation and control. This overwhelms the advantage that these digital currencies have in terms of security and ease of use.
China had been one of the major markets for cryptocurrencies and this crackdown from the authorities has placed the industry on the back foot. On the other hand, there is optimism that the industry will be able to overcome this challenge, like it has every other challenge faced before.