BTCChina Cryptocurrency Exchange Exited from its Bitcoin Business
BTCChina, once the country’s largest cryptocurrency exchange has exited from its bitcoin business as it jumps in line with the country’s latest anti-crypto crackdowns. BTCChina, which ran the first bitcoin exchange in China, said the company has exited the bitcoin business.
BTTC was founded by Huang Xiaoyu and Yang Linke in 2011. In 2018, the exchange side of BTCC was acquired by an unidentified Hong Kong-based blockchain investment fund but continued to operate as normal for investors outside of China’s great firewall.
The company once claimed that it accounted for 80 percent of the world’s cryptocurrency trading, but it was later caught up in the China’s various cryptocurrency crackdowns.
As per reports, Many of China's bitcoin mining operations have been closed in response to the Chinese government’s policy. One of the main reasons behind the latest crackdown is referred to the mammoth price hike of bitcoin over a year.
This is not the first time the exchange has had to deal with crypto-trading bans on the mainland, previous ban on trading led many exchanges to move abroad, or at least out of the mainland to Hong Kon. Some of the biggest names in the domestic crypto industry like Binance, Huobi, and Okcoin were pushed offshore.
To reassure investors, BTCC posted a statement on Tuesday 22nd June 2021 stating "exchange was not affected by the crackdown in mainland China. BTCC is immune from Beijing’s latest ban on processing bitcoin-related transactions". They also said “BTCC is not impacted for now because BTCC doesn’t provide trading of cryptocurrencies, but derivatives of cryptocurrencies”
Since Anti-crypto crackdown is different this time, many argue the latest departure by crypto miners and their operations hints at a more sinister effect on the markets, at least in the short term.
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