Bitcoin falls as Chinese exchange says it will halt trading

Bitcoin a 'fraud' that will 'blow up' according to JPMorgan Chase boss

CHINA'S BITCOIN exchanges have begun the process of closing down on orders from the Chinese government.

The price of bitcoin collapsed 16% against the dollar on Thursday and continued its slide until early Friday morning amid uncertainty about the future of the cryptocurrency and other digital coins in China, one of the biggest markets for cryptocurrencies. Unnamed sources told Bloomberg that Chinese regulators were told of the agenda by a "central bank-led group" considering the risks of cryptocurrency.

Meanwhile, BTCC, a bitcoin exchange, said its China-based exchange will end all operations on September 30 following unverified reports that Chinese authorities are preparing to ban cryptocurrency exchanges.

As of this afternoon, the price of bitcoin has dropped approximately one-third since September 1 when it peaked at $4967.32 on the ticker.

China's regulators plan to tighten the digital currency activities in China.

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.

However, there is much speculation that the Chinese government will establish a licensing process for cryptocurrency exchanges, with one theory being that OKCoin and Huobi will receive licenses before or shortly after their suspensions take effect.

The price of Bitcoin and almost all other cryptocurrencies has dropped sharply in the last couple of days.

China's bitcoin exchanges have received instruction that they will need to stop new user registration from today, September 15.

He added there should be a distinction between digital currencies, which were being studied and developed by authorities such as the Chinese central bank, and digital "tokens" such as bitcoin, which Li said were stateless and did not have sovereign support.

As well as regulators moving against virtual currencies, they are coming under harsh scrutiny from the private sector. The last time the virtual currency fell below $3,000 was August 5, over a month and a half ago. The restrictions will reportedly only apply to trading on exchanges, not over-the-counter transactions.

Jamie Dimon, the current CEO of JPMorgan Chase, recently stated that he believes Bitcoin "is a fraud" and that it would all eventually come crashing down.



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