After a complete ban ICO and foreign exchange transactions with cryptocurrencies on the territory of China, there was unconfirmed information that the Chinese government instructed to cease work cryptocurrency exchanges.
As reported by the Chinese news service Caixin, the market reacted immediately to the decline in virtually all digital currencies.
The resolution of the NBK regarding prohibiting the exchange of cryptocurrencies to Fiat money, which indirectly can be interpreted as a prohibition of activities of cryptocurrency exchanges.
“Since the release date of this notice, each platform providing trading services and currency exchange for deals tokens, it is prohibited to participate in transactions on the exchange of legal tender and tokens (“virtual currency”); to participate in the operations of private trading or trading in the Central counterparty, which involved tokens (“virtual currency”); to provide services of assessment, or to be information intermediaries in these Affairs”, – notes the regulator of the PRC.
The persecution in China led to the fall of Bitcoin prices by 20% from $5 thousand to $4 thousand, within three days after the ban, as in China one of the largest markets for Bitcoin and altcoins.
Major Chinese stock exchanges in China reported the strongest decline in prices in recent times. The price of BTC on OKCoin fell to $3 650,71, Huobi and BTCC have reported prices of $3 657,84 and $3 656,57 respectively. At the moment bitcoin is trading at OKCoin at $4 282,11, Huobi $3 903,11, BTCC $3 897,81.
Recall that yesterday the people’s Bank of China published a translation of a document banning ICO and cryptocurrency. China’s Central Bank in an official document confirmed the concerns about the risks associated with the ICO and has established six basic provisions that must be followed by residents of China.
It says that the virtual currency produced without the control of regulators, therefore, they do not have the characteristics of legal tender, and they cannot be used as such.
Further, the NSC prohibits organizations and individuals to participate in “illegal collection of funds, by using tokens. “Since the release date of this notice, the collection of funds using tokens should be immediately banned,” the document says.