Bitcoin trade plunges in China after tighter regulation

Updated 2017-02-16 09:26:10 Xinhua

Trading volume on China's major Bitcoin exchanges has plunged in the past week, since authorities tightened regulation of the digital currency.

BTCChina, Huobi and OKCoin, the country's three major Bitcoin trading platforms, have seen their daily transaction volume tumble from around 20,000 last week to around 6,000 at Tuesday's close. Bitcoin prices -- between 6,700 yuan (980 U.S. dollars) and 6,800 yuan on Tuesday -- are down by more than 10 percent.

The fall came after China's central bank warned exchanges last week against margin trading and money laundering, which was swiftly followed by withdrawal of some business on the exchanges.

Bitcoin, without ties to any bank or government, is underpinned by blockchain technology, a digital ledger system. It allows users to spend and transfer money anonymously, a handy tool for money laundering and capital flight.

Exchanges also offer margin trading, which allows investors to trade Bitcoins using borrowed funds to capitalize on price fluctuations but which also amplifies risk. The collapse in trading volume was mainly due to the end of margin trading, said Zhao Yao, a researcher with the Chinese Academy of Social Sciences.

Zhao warned that margin trading, by its nature highly leveraged, could stoke speculation, and only better regulation will avoid liquidity strains.

The value of Bitcoins surged in the second half of 2016 but plummeted after surpassing 8,000 yuan (1,165 U.S. dollars) per unit early in January.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58January 19 2018 15:27:04

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16January 19 2018 15:27:04

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18January 19 2018 15:27:04

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords