So there are rumours on the Internet, but these rumours were delivered to them by their third party providers and banks? Riiight
The rumors are that the Chinese government are going to shutdown the exchange. According to Lee this isn't whats happening, its that they are preventing people from depositing fiat to the exchange from a chinese bank account. The exchange is still allowed to run. Withdrawals to chinese bank accounts are still allowed and deposits and withdrawals in BTC are still allowed. You can still buy and sell Bitcoin, but you cant deposit money
from your chinese bank account.
Its a bit more than that though, its that you can't transfer money
into the exchange's bank account. That is the thing causing the major issues, because the funds are going to dry up. I can't honestly see people sending cash to them through the mail to fund their accounts.
You can call the rumours FUD and you are technically correct, because they aren't 100% true. The truth though is somewhere in the middle, as they aren't 100% false either
And before you say "we knew about this in Dec, it was priced in", the situation then was different. Everyone assumed that the government was just posturing and business would continue as usual with exchanges flaunting the ban. The actual enforcement of it has been on the horizon ever since, but most people assumed it would never happen
