3 min read 

17 cryptocurrency trading platforms, currently residing in Shanghai, are expected to stop all operations in the foreseeable future, following the most recent legislation adopted by the national government. All ICO-related activities have been previously outlawed by the National Internet Finance Association (NIFA). BTCChina, Binance, Bitbill and ICORaise are among the affected exchanges.

The price of BTC was not affected by the news

The ICO boom hit China in the beginning of 2017, when the exchange rate of major cryptocurrencies started to demonstrate explosive growth. During this year alone China has already witnessed 65 completed ICOs, all together worth $395 billion. Before 2017, only five initial coin offerings have reached their final stage in China.

Some experts do believe that Hong Kong, formally a part of China that nonetheless enjoys wide autonomy, can replace Shanghai as the number one cryptocurrency hub of the Far East and will play an important role in the future development of the crypto infrastructure. But this opinion is not universal. Charlie Shrem, BTC enthusiast and a leading expert at Jaxx, says that the times when China was able to seriously affect the exchange rates of Bitcoin, are over. In his Twitter, he wrote:

This China FUD is playing on all your fear, uncertainty and doubt. China has no real effect on the future of Bitcoin. Bitcoin is about censorship free and an alternative non-government controlled financial system. China’s relevancy is diminishing by the day. They overplayed their hand and there is a reason they are being ambiguous.

BTC trading volume by the national currency

Still an important location for cryptocurrency-related activities, China, however, can no longer claim leadership in this segment due to tightening regulation and lack of governmental support.

Trade cryptocurrencies

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.


GENERAL RISK WARNING


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
77% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.