[2017-09-15] Chinese Bitcoin Exchanges OKCoin and Huobi to Close in October

[nickbelski]

Chinese bitcoin exchanges OKCoin and Huobi will reportedly close their trading platforms by the end of October, joining BTCC, ViaBTC, and Yunbi in shuttering order-book services.

According to a report from Chinese media service Caixin, the two exchange heavyweights will be allowed to stay open longer than other exchanges due to the large number of users on the platforms, as well as the fact that neither platform had listed trading pairs for initial coin offering (ICO) tokens.

As of yesterday, both OKCoin and Huobi continued to operate normally and claimed that they had not been contacted by government regulators. However, Litecoin creator Charlie Lee–brother of BTCC CEO Bobby Lee–tweeted that the two exchanges were meeting with regulators today and “might change their tune” following the meeting.

Presumably, both exchanges will announce their closures soon. Earlier today, both ViaBTC and Yunbi announced they would suspend trading, with Yunbi closing on September 20 and ViaBTC shutting down its Mainland China operations on September 30. BTCC, the world’s longest-running bitcoin exchange, announced yesterday that it will suspend trading on September 30. These suspensions confirm earlier reports that regulators had said a bitcoin exchange ban was “certain”.

However, there is much speculation that the Chinese government will establish a licensing process for cryptocurrency exchanges, with one theory being that OKCoin and Huobi will receive licenses before or shortly after their suspensions take effect.

To that end, Li Lihui, a senior official at China’s National Internet Finance Association (NIFA), stated that the exchange crackdown was “a necessary action” to protect the interests of investors. He reportedly called for the government to develop stringent digital currency guidelines.

This is significant since NIFA–a self-regulatory agency established by the Chinese central bank–issued statements condemning initial coin offerings and bitcoin exchanges just days before each ban began to take effect.

https://www.cryptocoinsnews.com/chinese-bitcoin-exchanges-okcoin-and-huobi-will-close-in-october-report/

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[vit05]

Could someone explain to me why this news is good? Why the market react so well?

[NewbCoins]

i think its bad we have to wait so long. i wonder why is the reason okcoin and huobi can't close down more soon?

[richardsNY]

Could someone explain to me why this news is good? Why the market react so well?

I think it's because if China keeps cleaning their crypto roads, there at some point isn't anything left to ban. If we look at how the price has gone up throughout the years, China has always been a blocker of growth due to their anti crypto announcements. For whatever reason, China has a lot impact on the entire market, and that while Bitcoin isn't tied to whatever country. No more China ban announcements means no more situations like we experience right now. Essentially, it's not good news at all, because every person in the world should be able to easily obtain Bitcoin through whatever exchange in its country, but we have to deal with it.

[Marry Finch]

If by the end of October only the suspension of trading in the Crypto-currency is announced on some exchanges in China, then one thing is clear: the process of regulating crypto-currency in China is very delayed. It really looks like a conspiracy in China with the aim of collapsing the crypto-currency market. It seems that you need to learn how to manage without China.

[NewbCoins]

maybe the exchanges not have the money to pay back the customers. that's why they stay open for now.

[vit05]

maybe the exchanges not have the money to pay back the customers. that's why they stay open for now.

That is a real possibility. And this could indicate that they are trying to manipulate the market a little more. Buying time.

[btc_angela]

Could someone explain to me why this news is good? Why the market react so well?

I think it's because if China keeps cleaning their crypto roads, there at some point isn't anything left to ban. If we look at how the price has gone up throughout the years, China has always been a blocker of growth due to their anti crypto announcements. For whatever reason, China has a lot impact on the entire market, and that while Bitcoin isn't tied to whatever country. No more China ban announcements means no more situations like we experience right now. Essentially, it's not good news at all, because every person in the world should be able to easily obtain Bitcoin through whatever exchange in its country, but we have to deal with it.

Ok. I'm been waiting for this two trading exchanges if they are going to be shutdown as well. I guess the clean up is done. Almost all of the top Chinese exchanges have shown notice that they are closing. But why did the market suddenly jump? What kind of air does all of the whales inhale today that they suddenly decided to buy? LOL. Yes, you are right, Bitcoin is not tied to any nation, specially China. Let them do their thing, Bitcoin will progress with and without them. But I'm optimistic that they will be allowed to resume operation as long as they comply to the new set of regulations by the Chinese government.

[NewbCoins]

Could someone explain to me why this news is good? Why the market react so well?

I think it's because if China keeps cleaning their crypto roads, there at some point isn't anything left to ban. If we look at how the price has gone up throughout the years, China has always been a blocker of growth due to their anti crypto announcements. For whatever reason, China has a lot impact on the entire market, and that while Bitcoin isn't tied to whatever country. No more China ban announcements means no more situations like we experience right now. Essentially, it's not good news at all, because every person in the world should be able to easily obtain Bitcoin through whatever exchange in its country, but we have to deal with it.

Ok. I'm been waiting for this two trading exchanges if they are going to be shutdown as well. I guess the clean up is done. Almost all of the top Chinese exchanges have shown notice that they are closing. But why did the market suddenly jump? What kind of air does all of the whales inhale today that they suddenly decided to buy? LOL. Yes, you are right, Bitcoin is not tied to any nation, specially China. Let them do their thing, Bitcoin will progress with and without them. But I'm optimistic that they will be allowed to resume operation as long as they comply to the new set of regulations by the Chinese government.

probably because there will be bitcoin bank run in china. but for now, the exchanges that steal the customer money have a little more time before the time is up.

[BitHodler]

It's not that they will be forced to shut down completely. As it is right now, the two mentioned exchanges will only halt any trading activity involving Yuan, which basically means that crypto versus crypto trading remains allowed.

On the other hand, there are some speculations, which is also somewhat pointed out in this article, that there will be a few exchanges exempt from current regulations, and these exchanges might operate as normal eventually.

I at this point don't know what to think anymore ~ there is far too much information being pumped through the internet right now, where the far majority of this information is insanely speculative. Something fishy is going on here.

[Kemarit]

It's not that they will be forced to shut down completely. As it is right now, the two mentioned exchanges will only halt any trading activity involving Yuan, which basically means that crypto versus crypto trading remains allowed.

On the other hand, there are some speculations, which is also somewhat pointed out in this article, that there will be a few exchanges exempt from current regulations, and these exchanges might operate as normal eventually.

I at this point don't know what to think anymore ~ there is far too much information being pumped through the internet right now, where the far majority of this information is insanely speculative. Something fishy is going on here.

Correct, its hard to filter what's fake news and real news. I guess writers may have be spinning their articles so that what we get in "lost in translation" already. Exempt or not, new and tighter regulations or not, bitcoin will survived in all of this shenanigans. I guess we can speculate that some big whales or entities behind have already racking money as I type this because of all the chaos coming from China.

Bitcoin finally surge and closing to $4000. I consider that the market is already back even though this news came out. Let's see what's next coming from them and observed if it can put a dent again, similar to what it did this week and the previous.

[Granxis]

I think that the people of china will not remain silent in the face of this ban, and I do not think it is a logical reason for this ban, it is very wrong to shut down the companies.

[Taki]

I was reading that the Chinese government gave to exchangers 4 years to close their activity. This information is not proved, so it's more like a gossip. But I see big exchanges are closing one by one and I suppose all of them are going to be closed by the end of the year.