China is expected to ban all bitcoin and all other domestic currency transactions - a rigid act move to enter the US $ 150 billion market after the ICO was officially removed from the French market. the law last week.
According to informed sources, this decision will only apply to trading floors. That means the authorities have no plans to prohibit digital transfers through the OTC format.
Last Friday, the digital market experienced a sharp drop shortly after information about the ban on Chinese officials was revealed by the magazine Caixin. China is the world's most dynamic number-one currency trading market - accounting for 23% of the total bitcoin trading volume and also home to the world's largest bitcoin mines. At one point, China accounted for more than 90% of the global bitcoin volume.
"The transaction volume will definitely decrease," said Zhou Shuoji, founding partner of FBG Capital, a Beijing-based money investment fund. "The old accounts on the trading floor will still trade as usual, but the number of new accounts will definitely decrease. That will slow down the progress of the digital growth in China".
Although the engine shut down exchanges of money of Beijing remains unclear, much speculation that officials are trying to minimize financial risks eve leadership Communist Party of China has Personnel change next month.
Dollar-based bitcoins have risen about 600% since the beginning of the year, raising concerns about a global bubble of boom.
In 2016, the Central Bank of China has conducted research to publish their own digital coins.
This morning, 3 money exchanges, China's largest number is OKCoin, BTC China and Huobi said they have not received any notification from the authorities for the prohibition of cash transactions. All three exchanges were in normal trading today. At 11:56 am local time, bitcoin prices on OKCoin floor increased 6.3%.
Experts said that although the bitcoin ownership can be trafficked in China without the need for decks, the activity may take longer and be more risky in OTC transactions.
Mr. Zhou from the FBG Capital said closing command exchanges in China is not expected to affect the price of the global number by the foreign exchanges will still operate as normal. Moreover, the role of China in the Bitcoin market has begun to fade in recent months by the Chinese authorities to tighten regulations.