Beijing orders exchanges to stop trading in bitcoin amid fears increasing number of consumers in market could spark wider financial problems
The value of bitcoin has collapsed below $3,000 (£2,200) after Chinese authorities announced a crackdown on the digital currency.
The virtual currency, which emerged in the aftermath of the 2008 financial crisis, fell as low as $2,972 on Friday – a drop of 40% from a high of $5,000 earlier this month. The drop came after Beijing ordered cryptocurrency exchanges to stop trading and block new registrations, due to fears that increasing number of consumers piling into the market could spark wider financial problems.
“All trading exchanges must by midnight of 15 September publish a notice to make clear when they will stop all cryptocurrency trading and announce a stop to new user registrations,” the government notice said, according to Chinese state newspaper Securities Times.
BTCChina, one of the biggest Chinese exchanges, said on Thursday it would stop all trading by 30 September. It was followed by a series of other exchanges, including OkCoin and Huobi, announcing closures on Friday.
China accounts for almost a quarter of bitcoin trades and is also home to many of the world’s biggest bitcoin miners, who use huge amounts of computing power to make transactions in the digital currency.
