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Bitcoin Falls, Chinese Agency Says Risks of Exchanges 'Can't Be Ignored'

CryptocurrencySep 13, 2017 03:54PM ET
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© Reuters. The selloff in Bitcoin intensified on Wednesday

Investing.com – The selloff in Bitcoin continued unabated as sentiment turned bearish in the wake of a statement from The National Internet Finance Association of China (NIFA), claiming that “financial and social risks [of bitcoin exchanges] cannot be ignored.”

On the U.S.-based Bitfinex exchange, bitcoin fell to $3843, down $305.3 or 7.36%, well below its recent peak of $4,969. At current prices Bitcoin has a market cap of $64.09 billion.

The National Internet Finance Association of China, a self-regulatory agency, established by the People’s Bank of China, said that Bitcoin “is becoming a tool for money laundering” and warned that virtual currency trading platforms in China are not legally established.

Chinese regulators, however, are yet to confirmed any plan to shut down local exchanges but the statement from NIFA supports recent media reports warning that the decision to shutter local exchanges had already been made.

“China’s central bank, working with other regulators, has drafted instructions banning Chinese platforms from providing virtual currency trading services”, the Wall Journal said Monday, citing people familiar with the matter.

The latest crackdown on cryptocurrency activity in China comes a week after the People’s Bank of China (PboC) sent shockwaves through the cryptocurrency market, imposing a ban on individuals and businesses from raising funds through initial coin offerings (ICOs).

The string of recent measures proposed by China to curb the use of cryptocurrencies has unsettled investors as strong demand from Far East has been a key factor supporting cryptocurrency growth.

The string of recent measures proposed by China to curb the use of cryptocurrencies has unsettled investors as strong demand from Far East has been a key factor supporting cryptocurrency growth.

Bitcoin Cash fell $34, or 6.39%, to $498, while Ethereum fell 9.11% to $268.33.

Bitcoin Falls, Chinese Agency Says Risks of Exchanges 'Can't Be Ignored'
 

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