BTCChina, China's oldest crypto exchange, announced that it has exited the Bitcoin business amid the government's strict ban on Bitcoin mining that has resulted in many businesses in the country moving away from the crypto sector, according to a report from the South China Morning Post .
BTCChina was founded in 2011 by Huang Xiaoyu and [Yang Linke ] who helped support Bitcoin to Chinese investors when the concept of crypto assets was still foreign in the country.
The company claims to have controlled 80 percent of crypto trading in the world but has been entangled in various crypto-ban policies in China.
In 2017, BTCChina said it would stop trading cryptocurrencies according to government regulations at the time.
In the latest announcement, BTCChina, Thursday (24/6/2021) said it had left the Bitcoin business in response to government policies.
The recent ban on crypto has resulted in many Bitcoin mining businesses in the country going out of business.
Beijing sees crypto as a threat to financial stability because it can be used by the people to circumvent government control over the movement of capital.
In addition, price volatility is also a concern.
The latest ban follows a more than sevenfold increase in the price of Bitcoin in the space of a year then a more than 40 percent drop in a month.
Local governments in various parts of China, including the mining hubs of Xinjiang , Inner Mongolia and Sichuan, have ordered miners to shut down operations.
This previous ban in 2021 has resulted in many crypto exchanges fleeing overseas or moving to Hong Kong.
Huobi, Binance and OKCoin are among the major exchanges that have Chinese founders but are being pushed abroad, according to well-known local media, the South China Morning Post .
BTCChina decided to sell its cryptocurrency exchange venture which was bought by a Hong Kong-based investment fund in January 2018.
The exchange continues to operate normally under the BTCC name but is not accessible to users from China.This led to allegations that Yang remained in control of BTCC, but the statement was denied by the company.
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BTCC added, Yang is not an employee or investor of BTCC in Hong Kong.
On Tuesday, BTCC assured investors it was not swayed by the crypto ban in China.
BTCC is immune from these rules and adds that all incoming and outgoing transactions continue to run normally, because BTCC does not provide crypto asset trading but derivatives trading.
BTCChina is now focusing on blockchain business opportunities outside of crypto asset trading. The Chinese government supports the implementation of blockchain in order to build an advanced blockchain industrial system.