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Bitcoin China to shut down trading platform

Press Trust of India  |  Beijing 

BTCChina, one of the biggest bitcoin exchanges in the world, today announced that it will shut down all trading activities on its platform from September 30 as regulators clamped down on crypto-currencies.

The move confirmed earlier reports of Chinese officials mulling a closure of domestic exchanges for virtual currency trading, and sent the price of Bitcoin into a nosedive.

Following the announcement, the price of Bitcoin this evening plunged 6.09 per cent to USD 3,630, the lowest level since August 12, state-run Global Times reported.

The price of Bitcoin has been on a steep downward curve since Tuesday, when several media outlets carried reports of Chinese officials planning to bar commercial trading of virtual currencies. The price fell from a high of about USD 4,360 to below the USD 4,000 mark yesterday.

In a statement, Bitcoin said it had made the decision based on an official document released on September 4.

"Adhering to the principle of preventing investment risks and maximising the interests of users, the Bitcoin team has carefully discussed and made these decisions," the statement said.

Bitcoin is a digital currency that enables individuals to transfer value to each other and pay for goods and services bypassing banks and the mainstream financial system.

Bitcoin is one of the largest platforms for virtual currency trading.

The People's Bank of China, the country's central bank, and several other agencies released a document on September 4, in which they voiced their concerns over risks in virtual currency trading and suggested measures to curb such risks, including barring new issuance of initial coin offerings.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, September 14 2017. 20:07 IST