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Crypto - Bitcoin sheds $500 as Cryptocurrency Exodus Intensifies

16 September 2017

On Thursday, Bitcoin saw its shares tumble by 13.6%, according to Business Insider.

Major Chinese bitcoin exchange BTCChina said on Thursday it would stop all trading from Sep 30, setting off a slide in the value of the cryptocurrency that left it more than 30 per cent away from the record highs it hit earlier in the month. NIFA also said that cryptocurrencies had no legal base of foundation in China. Earlier this this year, Ethereum gained worldwide notoriety following a runaway increase in value that triggered a frantic GPU purchasing spree that left the PC gaming world reeling over graphics card availability and rampant price increases. Reuters attributed the information to a government notice signed by the Beijing city group in charge of overseeing internet finance risks, which had been verified by a government source. After all, China has been one of the largest presences in the cryptocurrency community for some time: it is home to about a third of all initial coin offerings, and its miners produce a hefty sum of new tokens every day. However, there is no regulatory body to monitor its trade.

"Chinese volumes account for less than 10 percent of global volume - they are no big deal", said Charles Hayter, founder of cryptocurrency analysis website Cryptocompare. Analysts have speculated that it could be the start of a broader crackdown by governments around the world leery of the potential for digital currencies to be used in scams or for black-market activity.

Shanghai-based business media Yicai is reporting that Shanghai's Municipal Financial Service Office has issued verbal warnings to Bitocin exchange startups that are being interpreted as guidance that they should stop trading. The Great Firewall of China won't be able to block Bitcoin traffic originating on Blockchain's decentralised network. On Tuesday, a United Kingdom watchdog group, Financial Conduct Authority (FCA), also issued a warning about initial coin offerings.

The FCA on Tuesday warned customers about ICOs, saying they were "very high-risk, speculative investmentsts" and only for experienced investors who are prepared to lose their entire stake. Authorities don't have plans to stop over-the-counter transactions, the people said. So if you were a dollar millionaire but put it all into bitcoins, you lost over $363,000 (£272,000) overnight.

Crypto - Bitcoin sheds $500 as Cryptocurrency Exodus Intensifies