China's First Virtual Currency Exchange Ceases Operations Amid Regulatory Crackdown

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] China's first cryptocurrency exchange has announced that it will cease all trading operations.

According to local media on the 23rd, Bitcoin China (BTC China) revealed that it sold its stake in Singapore-based cryptocurrency trading platform ZG.com to a cryptocurrency fund in Dubai the previous day.

Bitcoin China was established in Shanghai in 2011 and was once the largest Bitcoin exchange.

Bitcoin China explained that the complete withdrawal from cryptocurrency trading was due to crackdowns by the Chinese government.

Earlier, on the 21st, the People's Bank of China, the central bank, summoned banks and electronic payment company Alipay and instructed them to strictly crack down on cryptocurrency trading such as Bitcoin.

According to authorities, Chinese citizens caught trading cryptocurrencies in the future will have their bank accounts canceled or be permanently banned from using Alipay. This is interpreted as a determination to fundamentally block all cryptocurrency trading, including Bitcoin.

As a result, Bitcoin prices fell below $30,000 for the first time since January the previous day.

In China, following the Inner Mongolia Autonomous Region, the Sichuan provincial government recently also banned cryptocurrency mining entirely. If mining activities are detected, the mining sites will be immediately shut down, and all corporations and individuals supporting the operation of the mining sites will face disadvantages under various government policies.

China's Global Times estimated that currently, 90% of Bitcoin mining sites within China have been closed.

This content was produced with the assistance of AI translation services.