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- BTCChina said in a recent announcement that it has stopped all Bitcoin related business in China
- Crackdown in China forces more miners and crypto exchanges to close down operations
- Largest exchanging platform in China takes a leave from crypto activities
Every new development in technology acts as a boon for some and a bane for some. Cryptocurrency and blockchain technology are threatening many countries’ financial stability. Being a decentralized system, Bitcoin helps the investors in circumventing Government norms, which might be a good thing for them but generally turns out to be a disaster for the Government. It decreases the value of the country’s fiat money as well. China is one of the countries that have imposed a rough crack down on cryptocurrency because of the potential threat the Government faces.
BTCChina, the largest crypto exchange halts crypto exchange
One of the largest and the first ever cryptocurrency exchanges in China, BTCChina, has cleared out any operations affiliated to Bitcoin tradings and transactions in the country. BTCChina initiated the entry of cryptocurrency in China when the concept was still foreign to them. Opened in 2011, Huang Xiaoyu and Yang Linke founded the platform and built an empire on it. Before the ban imposed by the Chinese Government in 2017, it claimed to carry out 80% of the Bitcoin transactions globally in some time. It was through Yang and Huang that the Government warmed up to the idea of cryptocurrency in the initial years of operations.
However, after the band and the recent crackdown, most Chinese crypto exchanges had to either transfer their business or lock down the entire operations. The crackdown did not just affect the small traders but the big ones as well. BTCChina announced on 24th June that it has stopped all activities revolving around Bitcoin or cryptocurrency mining because of the ban. The company has allegedly sold off their stake on a Singapore based Bitcoin exchange called ZG.com to a Dubai buyer and now operates globally except for IP addresses that are from China.
Chinese Government forces crypto miners to shift their undertakings
Beijing strongly advocates the crackdown which has forced the miners of the country to scatter in different places around the world. The country feels that Bitcoin is just a way to bypass the capital controls of the Government on its people’s finances. The volatility associated with Bitcoin is a strong reason as to why many Governments fear its legal adoption. Orders to shut down all kinds of miners across the Chinese territory have been given by the local authorities.
China used to be at the forefront of mining cryptocurrency. Exchanging platforms like Binance, Huobi, etc. all have Chinese founders but drifted from their origin country because of the strict crackdown. Yang, who was one of the most influential industrialists while running BTCChina, is claimed to run the now modified BTCC that operates under a Hong Kong based platform. However, BTCC has denied such reports.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
