It has become official, China's second largest Bitcoin exchange has decided that they will be closing their operation on the 30 of September. This is an unfortunate turn for traders who were hoping that the news out of China was mere FUD.
In a tweet from the Company's twitter account on Thursday (BTCC) the exchange said that the move was in reaction to the announcement by the regulators last week.
The reaction on the markets was swift as Bitcoin breached the $3,600 level and continued on its march to $3,500. There are also rumours that a second Crypto exchange in China could also soon be releasing a similar announcement.
Initially, BTCC said that they would be changing their business model in order to deal with a potential ban. There is no doubt that this announcement has caused a shock in the industry.
This caps off a really tumultuous week with false statements, rumours and speculation. Although these rumours began to surface on Friday afternoon of a digital currency exchange ban. There was then further speculation that the ban may only be temporary and that the exchanges would then look to regulation.
As of time of writing, there has still been no official announcement from the regulators that they would order the exchanges to be shut. Yet many traders are not taking chances and we can see that across the board as a number of coins are taking a hit.
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Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.