BTCChina, one of the oldest crypto exchanges in the world, leaves the Chinese market due to the tightening of the government’s stance.
June 30, 2021, | AtoZ Markets – BTCChina (BTCC) was founded by Huang Xiaoyu and Yang Like in 2011. The exchange actively popularized bitcoin and the idea of cryptocurrencies in general among a new generation of Chinese investors, when this technology was still a mystery to many.
At one point, BTCChina stated that it accounts for 80% of all cryptocurrency trading in the world. According to the South China Morning Post, BTCC has also sold its stake in the Singapore-based ZG.com exchange.
BTCChina will operate in other regions
Despite its rich history, BTCC has come under pressure due to radical government bans on cryptocurrency companies. “In response to government policy” – this is how VVTS explained the reasons for leaving the market.
Not only BTCC is dissatisfied with the new order. Beijing’s bans have prompted several major exchanges to suspend operations or take businesses out of the country. These include Huobi, Binance, and Okcoin. All of them were forced to leave the country, despite the fact that their founders are from China.
BTC China will switch to other blockchain applications that are not as tightly regulated by the government. Despite the harassment of cryptocurrency, the government says it supports blockchain, a technology that could form the basis of an advanced industrial system.
Crypto exchange BTCC is leaving China, but its Hong Kong office will not be affected by these changes. Moreover, the company intends to develop blockchain applications as part of a new strategy that will help it stay in the crypto space.
Rules and prohibitions become the norm in China
Over the past year, Beijing has been busy battling cryptocurrencies, suggesting they threaten financial stability. The government is also concerned about the volatility of cryptocurrency prices and the potential negative impact on domestic investors.
The latest boom-bust cycle has alerted national governments in China. As a result, they decided to ban mining in some regions, including Inner Mongolia and Sichuan. These prefectures were popular with miners for their cheap coal or hydropower.
The mining ban has led to a massive outflow of miners from China. According to some reports, before the ban, China controlled more than 75% of all cryptocurrency mining in the world. Now many of them rushed to Kazakhstan and Texas.
Think we missed something? Let us know in the comment section below.