Chinese ICO ban blows on the Bitcoin market

Several Chinese cryptocurrency exchanges have delisted markets in a bid to comply with China’s recent clarifications on the legality of ICOs. Yunbi, Dahonguo, and Yuanbao have issued statements addressing the central bank’s new regulations, moving to delist markets that facilitate the trade of tokens issued via initial coin offering.

On the morning of September 5, the news outlet wrote that “more than half have entered the ‘retreat’ process, delisted the ICO tokens or suspended services.” By 6 pm Beijing time, more than 40 ICO platforms are closing down, according to China Daily. Some have suspended registration while others have permanently stopped operations to varying degrees.

Chinese cryptocurrency exchange, Bitbays, has posted a notice stating that it has ceased operations. The notice states that “due to the new regulatory changes led by China’s central bank, the British company Bitbays decides to cease operations of its digital asset exchange ‘Bi Bei Wang’ in China. We are very sorry for the inconvenience.” Bitbays has since posted a tweet stating that the company has “migrated to mixcoins.com”, and that user “funds are safe.”

In addition, an insider told a China Securities Journal reporter that the regulators have instructed Chinese banks and payment agencies to immediately stop providing services to ICO platforms, both directly and indirectly. These services include account opening, registration, trading liquidation, settlement and other payment services. Among other measures, transactions in existing personal accounts of ICO platforms should be examined and monitored for anti-money laundering compliance. Suspicious transactions found should also be reported, the regulators said.