I read the article again at Coindesk. The OP has made a mistake. Fiat deposits and withdrawals with the Chinese exchanges are allowed. Cryptocurrency deposits and withdrawals are the transactions disallowed by the exchanges. They became something like a regular stock market. Okcoin and Huobi has released a statement that this will be enforced for a month until they have their AML mechanisms in place. How will the do that with Bitcoin? What stops me from sending them to another wallet owned by a close trusted friend in another country?
If you cannot deposit or withdraw any cryptocurrency in your exchanger then its useless to do some trading on that site. Possibly that occurrence has contributed to the latest decrease on the price of bitcoin. But hope Chinese exchangers can comply to the required AML mechanism standards so they can operate normally and bring back bitcoin more lively again in China.
I predict that the outcome will be that the Chinese exchanges will be banned from allowing their users from making cryptocurrency deposits and withdrawals from the exchange.
Trading cryptocurrencies in China will be like trading stocks and fiat currencies. The risk of those exchanges to become an instrument for money launderers is very big.
this had to happen a long time ago and should happen everywhere in the world. in fact this is the best thing that can happen for cryptocurrencies.
many users are staying away because bitcoin and others are not regulated and when this happens a lot of good things can also happen. for example a bigger adoption. and even possibly it many lead to exchanges being unable to run away.
I find your comment ignorant and laughable. If you really believe in what you said then you have taken away the freedom and the things we love about Bitcoin. Why would I want to be limited by the exchanges? What use is there for the Bitcoin blockchain them? You might as well trade centralized Bitstamp tokens or something the same.
