Bitcoin Plunges After China Bans Virtual Fundraising

Bitcoin Cash

Even so, the notices suggest Chinese policy makers are moving quickly on a previously reported plan to end exchange trading, their most far-reaching measure to rein in the growth of cryptocurrencies. At time of writing, one Bitcoin is price at about $3,014, down 18.54 percent in the last 24 hours according to CoinMarketCap, and down almost 40 percent from its July all-time-high of $4,952.

Some of the major Chinese cryptocurrency exchanges, like BTCC, viaBTC, BitKan, have already announced their closure.

One of China's biggest bitcoin exchanges said that it would end trading after news reports said regulators have ordered all Chinese exchanges to close, causing the price of the digital currency to plunge.

China's central bank has yet to respond to questions about bitcoin's future in the country but earlier warned it was traded without regulatory oversight and might be linked to fraud.

The price of Bitcoin and almost all other cryptocurrencies has dropped sharply in the last couple of days. Despite its halt to local trading, Shanghai-based BTCC, the world's oldest bitcoin exchange, said its other businesses, including an worldwide exchange and a bitcoin mining pool, remain unaffected. The price of bitcoins regained some ground on early Friday morning, when the rate climbed $124, or 3.8 percent. It's not an unreasonable theory.After all, China's crypto community added more than trading volume to the market, they added the computers and hashing that power the network.

Investors in China contributed up to 2.6 billion yuan, or $397 million, worth of cryptocurrencies through initial coin offerings in January-June, state-run media have said, citing data from the National Committee of Experts on Internet Financial Security Technology.

This week the Reserve Bank of India (RBI) also said that it was not comfortable with Bitcoin and has a group looking into cryptocurrencies as legal tender.

In July, the CoinDash ICO became chaotic when a hacker made off with $7.4 million in digital currency, and Veritaseum has also lost $8.4 million through an ICO.

As well as regulators moving against virtual currencies, they are coming under harsh scrutiny from the private sector.

"It's worse than tulip bulbs", JPMorgan Chase CEO Jamie Dimon said Tuesday.