Bitcoin prices are sinking on reports that China plans to shut down local Bitcoin exchanges. Also, today JP Morgan Chase CEO called Bitcoin is a fraud. Yet, there is more bad news for cryptocurrencies, as BITKAN stops OTC Bitcoin exchange in China.
13 September AtoZForex - The China based Bitcoin exchange, BITKAN announced that the company will suspend its over-the-counter (OTC) Bitcoin and bitcoin cash trading services in China. Founded in 2013, BITKAN owns the largest number of users within the industry in China.
BITKAN features OTC trading service, but also offers price viewing, news reading, mining monitoring, price alert and E-Wallet services. According to BITKAN, the decision was made in response to the recent ban on initial coin offerings (ICOs) in China.
What will happen to BITKAN wallets?
The suspension will affect both BITKAN's web-based and mobile users. According to the firm the deposit and withdrawal functions of the digital assets will not be affected. The suspension followed an announcement by People’s Bank of China’s recent decision to ban fundraising through digital currencies, branding it as illegal. BitKan explains:
"After the suspension of the OTC service, BitKan’s wallets will continue functioning normally and deposition and withdrawal of funds will not be affected."
OTC is popular among investors as it allows them to trade outside the online exchanges and access competitive pricing.
Will BITKAN resume its OTC trading service?
Despite the announcement of BITKAN to suspend its OTC Bitcoin service, the firm did not say when or whether it would resume its OTC trading. However, the disclosure highlights the escalating impact the Chinese government's recent policy moves have had on the local and global crypto currency industry.
Many reports claim that China is on the cusp of a blanket ban on exchange-based crypto currency trading. Major Chinese exchanges have said that no official notice has been received from regulators so far.
Bitcoin falls after BITKAN Stops OTC Bitcoin exchange in China
The news of BITKAN to suspend its OTC Bitcoin trading has pushed Bitcoin into a free fall. Especially after the earlier news of China's plan to shut down local Bitcoin exchanges and JPM CEO's statement about Bitcoin. After today's news of BITKAN, Bitcoin plunged more than 5% and traded below US$4,000.
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