China’s oldest exchange leaves Bitcoin business under regulatory pressure – Bitcoin News

Allegedly the first cryptocurrency exchange founded in China, BTCC got out of the bitcoin trading business last week. According to statements, this was the result of ongoing regulatory pressure Beijing is putting on cryptocurrency companies. The company will now switch to blockchain-related efforts.

BTCC closes its stock exchange business

BTCC, the company that once operated the most prolific exchange in Asia, announced its exit from the cryptocurrency business. The company said it sold its shares on the Singapore stock exchange ZG.com in May 2020. Most of the China-based cryptocurrency exchanges ran overseas years ago, during the first cryptocurrency crackdown in 2017.

But now the government is tightening its control over crypto to avoid losing capital. People’s Bank of China is now targeting OTC trades and cryptocurrency-related accounts. The accounts of these targeted P2P and OTC companies are being blocked according to local reports. This will affect cryptocurrency brokers in the country who now largely serve the entire market due to restrictions.

However, an offshoot of the Hong Kong-based company issued a statement stating that crackdown would not affect them. The company stressed that the restrictions in mainland China would not affect its cash flow. It stated:

BTCC [Hong Kong] is not affected for the time being, as BTCC does not offer trading in crypto currencies, but rather derivatives of crypto currencies.

The company will now switch to developing blockchain-based applications. The Chinese government supports the use of blockchain and has made it one of its focal points in its fourth industrial revolution program.

Mining crackdown in full effect

While the cryptocurrency exchanges are also feeling the heat from the government, the miners are hardest hit. The government has closed several mining facilities and imposed mining bans in key provinces. This has had an impact on the running of the displaced miners who are now seeking refuge in other regions and countries.

Inner Mongolia, Sichuan and Yunan, all provinces where cryptocurrency mining is popular, have issued warnings and expelled miners from their territories. Mike Huang, operator of a cryptocurrency farm in Sichuan, told Reuters the situation was dire. He stated:

Mining machines sell like scrap.

This exodus has further affected the Bitcoin network. The hashrate (the amount of work that goes into securing the network) has been inconsistent for two weeks and is 67.9 EH / s at the time of writing, down over 28% from yesterday. Bitcoin hashrate is now down nearly 65% ​​from its all-time high of 191 EH / s in May.

What do you think of BTCC’s exit from the stock market? Let us know in the comments section below.

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