Bitcoin prices have taken a tumble as china clamps down on exchanges around the country. With a number of exchanges such as BTCC having to close up shop to fiat users, it seems verbal warnings have been a huge deterrent as many consider legal action by the state to be the next step. Recently, BTCC have announced that it will also close BTC to Yuan exchange services on its site.
As seen below the outline of the points made by the state included the following which effectively put a end to trading virtual currencies. This comes as the likes of OkCoin and Huobi, 2 of the countries biggest exchanges in terms of trading volume also announced their plans to stop trade for the BTC/Yuan pair.
Before 15 September midnight, exchanges shall publish closing announcements, and announce a schedule to stop the trading of all virtual currencies. New user registration shall be stopped immediately after the announcement
This comes as the Chinese state also placed a blanket ban ICO’s from being carried out in the country. However the latest move has faced some outcry as many outside of the country feel the crackdown on cryptocurrency users still may not justify user data being handed over to the state.
Exchanges shall save all user trading and holding data, and send it to local authorities immediately in DVDs.
To conclude, the short term outlook for Bitcoin markets seem heavily bullish, with a retest of the $3000 figure to occur soon according to current trends. This presents itself as a huge opportunity to purchase cheap bitcoin as the long term trend continues to be a upward one as the currency moves from strength to strength in the western world. The verbal outline which was released on September 5 has become the catalyst forcing many big names including ViaBTC to cease operations. Users of BTCC can still trade between cryptocoins such as Bitcoin/Ethereum etc., but one of the biggest pairs – BTC/Yuan, will no longer be available.