ETH/USD Surges Upwards after Market Crash By Regulatory

ETH/USD Surges Upwards after Market Crash By Regulatory

It added that the exchanges would be told to leave the market. After trading above $400 earlier this summer, the price of ether dropped another 15 percent on Thursday to around $232.

Precipitous declines in prices for bitcoin and Ether in the wake of a potential crackdown on exchanges by Chinese authorities have shaved almost $40 billion off the combined market capitalization of the cryptocurrencies over the past two weeks.

One of China's largest cryptocurrency exchanges, the Shanghai-based Bitcoin China, already announced yesterday that it would cease operations on September 30.

BTC China, one of the nations' biggest online exchanges, said Thursday it will immediately stop accepting new account registrations. According to publically available data, approximately 95 percent of global exchanges from traditional fiat currency into bitcoin are from purchases in the Chinese renminbi.

But although Chinese exchanges used to dominate bitcoin trading - according to their reports - because of the fact that they did not charge fees, volumes have plunged since January, when Chinese authorities made fees mandatory.

"On September 4th, China's central bank together with six other departments released a public statement on regulation policies and warning the risks of ICO projects".

Some sources stick to the view that BTCC's decision to stop trading has nothing to do with the rumors regarding exchanges being shut down.

Things were looking up for Bitcoin traders for most of 2017, but as they say, all good things come to an end.

The government in Moscow plans to legalize and regulate cryptocurrencies as securities, with a bill expected by the end of the year, Siluanov said last week. Currencies like Bitcoin continue to be hard pressed to present as legitimate alternative monies when their value changes within hours.

It's unclear whether there are plans, as some have speculated, to re-launch cryptocurrency exchanges in China under new rules, or the ban is permanent.

As the ban on trading all cryptocurrencies for yuan becomes realized across the country, many of China's bitcoin miners, which account for at least two-thirds of the total bitcoin mining hashpower globally, could find themselves without a way to sell their bitcoin. This week JPMorgan chief executive Jamie Dimon branded Bitcoin a "fraud" and said it was set to "blow up".

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