BEIJING/SHANGHAI/LONDON (Reuters) - Chinese bitcoin exchange BTCChina said on Thursday that it would stop all trading from Sept. 30, setting off a further slide in the value of the cryptocurrency. Oct 23, · 1. Bitcoin Trading vs. Investing. The first thing we want to do before we dive deep into the subject is to understand what Bitcoin trading is, and how is it different from investing in Bitcoin.. When people invest in Bitcoin, it usually means that they are buying Bitcoin for the long term. In other words, they believe that the price will ultimately rise, regardless of the ups and down that. Sep 11, · China plans to ban trading of bitcoin and other virtual currencies on domestic exchanges, dealing another blow to the $ billion cryptocurrency .
China stops bitcoin tradingChina Bitcoin Exchange to Stop Trading Virtual Currencies Amid Crackdown - 纽约时报中文网
China has sought to walk a tightrope when it comes to bitcoin and similar virtual currencies. Whereas the currencies provide the country with a chance to develop new and emerging technologies, officials also worry that they would allow Chinese consumers to get around tough restrictions on how much money they can send overseas and allow them to be used to launder money. It said the move was in response to a decision this month by Chinese regulators to ban initial coin offerings, in which new digital currencies seek to raise funds.
Bitcoin is increasingly in the spotlight around the world. Its proponents — a group that includes tech enthusiasts, civil libertarians, hackers and criminals — cheer the fact that it can be sent across borders anonymously and is not regulated by a central authority like a typical currency.
China has emerged as the leading force in bitcoin trading in recent years. One of China's biggest Bitcoin exchanges has said it will stop trading, after a government warning over virtual currencies. The country has seen an explosion of digital currency trading, sparking fears about the financial risks and speculative investing. The price of Bitcoin tumbled sharply following the BTCC announcement late on Thursday but has since regained some ground.
Chinese authorities expressed concern over the investment risks involved in crypto-currencies and ordered a ban on initial coin offerings, or ICOs, earlier this month. A growing number of tech companies are opting to sell digital "tokens" to raise funds because they are quick, easy and unregulated.
Then on Wednesday this week, the state-backed National Internet Finance Association issued a warning that virtual currencies are increasingly being used as a tool for illegal fundraising and money laundering. BTCC, one of the world's biggest Bitcoin platforms, said in a tweet Thursday after "carefully considering" the directive from regulators, trading on its platform would cease and it would stop registering new users from Thursday.
More intervention is expected. The BTCC shutdown comes ahead of speculation that the Chinese government plans to completely ban exchanges. Reuters and other media have reported this week, citing sources, that China is planning the suspension, but the regulator has not yet made any such announcement.
China's ICO ban, and wider fears of more regulation, has prompted a sell-off that has wiped billions of the value of crypto-currencies since they hit record highs at the start of the month. Regulators around the world are in the midst of working out how to address some of the risks around virtual currencies.
Regulators in Singapore , Hong Kong and Canada have also pointed out some of the dangers. Digital currencies are also facing scrutiny from the private sector.
Mr Dimon told an investor conference in New York that if any of his traders were found trading Bitcoin he would "fire them in a second", and that Bitcoin was "worse than tulips bulbs", referring to a famous market bubble from the s.