The value of digital currencies, Bitcoin continues to fall in response to the Chinese government's decision to close the crypto currency exchange in the Bamboo Curtain country. The planned closure of the Bitcoin exchange and the digital currency came from a regulatory committee in China overseeing online financial activity.
Quoted by Reuters on Sunday, September 10, 2017, at the beginning of this week the Chinese government has banned Initial Coin Offering (ICO). In principle, ICO is the same as the Initial Public Offering . If the IPO is related to the stock only, in ICO, a company sells a number of its digital currency tokens. Sometimes ICO is also called token crowdsale .
The impact of this news, Bitcoin exchange rate sag. On Saturday September 9, 2017, based on monitoring from the coinmarkecap site , Bitcoin's value plummeted 7.7 percent to US $ 4,271, another digital currency, Ethereum, dropped 11 percent to US $ 293, the popular Bitcoin Cash dropped 11.2 percent to US $ 579.
A day later, the exchange rate of digital currency is also the trend is still down. On Sunday 10 September when the news was made, Bitcoin's value dropped 4.5 percent to US $ 4,046, Ethereum tumbled 5.23 percent to US $ 278 and Bitcoin Cash tumbled 14.92 percent to $ 487.
Bitcoin's exchange rate in mid-August set a record, which touched US $ 4,224 or Rp56 million. This achievement increased on September 2, Bitcoin value close to US $ 5,000 or Rp65, 7 million.
China's plan to close the exchange of digital currencies is not yet fully known by the Bitcoin exchange manager in the Land of the Great Wall.
Reuters lists three digital currency exchange points, namely OKCoin in Beijing, BTC China in Shanghai and Huobi in Beijing, they have not heard anything about the planned closing of the digital currency exchange being brewed by the Chinese government.
Meanwhile, Digital Currency Trading Business Development Manager, BitMEX, Greg Dwyer admitted confused with China's plans that it will ban Bitcoin exchanges, following the ICO ban.
"If the plan is true, and then a sell-off will happen, it could see a further decline over the weekend, which means a big exchange of yuan should stop trading," Dwyer said.