Black Friday at the Coin Bureau Store: Join us for a long weekend of SALES!
2 min read

No Ban After All as China will Likely not Ban Bitcoin Exchanges

By Editorial Team

Was it all FUD? Was China ever really considering banning Bitcoin exchanges or was it just people who were spreading rumours based on insufficient information. There were conflicting reports by exchanges, government officials and others.

These rumours were also perpetuated by some large organisations such as Caixin news agency in China and the Wall Street Journal / Bloomberg in the USA.

This caused large scale sell offs across the Crypto markets as many people believed that this would severely dampen the demand for crypto currency trading globally. Right after this was reported, there were snarky comments by Jamie Dimon who likened Bitcoin to a fraud. This further reinforced the decline in prices.

On the 13th of September, China’s National Internet Finance Association (NIFA) released a statement that claimed currently, Bitcoin exchanges do not have the authority to operate. However, the Peoples Bank of China and NIFA have no intention of banning Bitcoin exchanges.

The eventual intention of these regulators is to release a licensing program that will provide the Chinese exchanges with the regulatory framework which will allow them to operate. One can therefore conclude that the exchanges will receive notifications to implement regulatory changes but will not be ordered to shut down.

Positive Developments?

This could be a positive development for the Crypto Currency market. If there are regulations that are instituted then it would give many of the people who are sitting on the side a new reason to invest in the crypto currency.

According to a number of local news publications in China, they believe that the ban will also only apply to those projects that are disreputable and are not up to industry standards. Some of the largest exchanges such as OKCoin, BTCC and Huobi will probably be eligible to apply for the licences when the government officially releases the new regulations.

Moreover, according to local news sources, the PBoC and NIFA have clarified that bitcoin is not being “banned” and the Chinese government will be providing further guidance in the upcoming months. If there are any Bitcoin exchanges that have not instituted the adequate Anti Money Laundering and KYC (Know Your Customer) protocols, they are at risk of falling foul with potential laws and could be suspended.

Featured Image via Fotolia

Editors at large. Posting the latest news, reviews and analysis to hit the blockchain.
View all posts by Editorial Team -> Best Crypto Deals ->

Related Posts

FTX Exchange
Withdrawals not Halted at FTX: Instead Binance will Buy FTX
FTX Exchange

Withdrawals not Halted at FTX: Instead Binance will Buy FTX

November 9th, 2022 3 min read
OKX invests in WAX
OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX
OKX invests in WAX

OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX

June 3, 2022 2 min read
Binance partners with the weekend
Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour
Binance partners with the weekend

Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour

June 3, 2022 2 min read
21Shares Releases Sixth State of Crypto Report
21Shares Releases Sixth State of Crypto Report: Summary
21Shares Releases Sixth State of Crypto Report

21Shares Releases Sixth State of Crypto Report: Summary

June 2, 2022 3 min read
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

June 2, 2022 2 min read
Regulators are “Not Allowing” Banks to Engage with Crypto
Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto
Regulators are “Not Allowing” Banks to Engage with Crypto

Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto

June 1, 2022 2 min read
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution

US Conference of Mayors Introduces Blockchain Resolution

June 1, 2022 2 min read