Bitcoin Suffers Decline From Chinese Ban Reports

Cryptocurrencies

Several media reports indicate China will cease to accept the cryptocurrency in an attempt to grab a better hold of the market and eliminate the risk of it.

The price of bitcoin took a hit to start the week following reports indicating the government of China would be shutting down exchanges of the cryptocurrency.
The Wall Street Journal reported this shift in policy “shows how nations are wrestling with bitcoin and its place in the financial system.”
On Monday research site CoinDesk wrote this is the second banning cryptocurrencies in China since at the start of September the People’s Bank of China (PBOC) banned initial coin offerings “suddenly outlawing the practice of creating and selling cryptocurrency to investors to finance startup projects.”
Since then Fortune reported bitcoin had seen a 20 percent drop in its value. Speculation is abundant as confirmation of the ban hasn’t been made by Chinese officials. Fortune also indicated this proposed ban wouldn’t stop current users in China evading the limits set in place by the government on money moved outside the country. Instead, this ban would affect new users looking to get into bitcoin and potentially impeding its growth.

Uncertainty hits bitcoin as news reports not confirmed yet by Chinese authorities

“Beijing’s crackdown on bitcoin is part of a broader effort to root out risks to the country’s financial system,” The Wall Street Journal wrote.
According to CNBC, experts in the industry claimed the regulations from China could bring “some much needed law and order to the market.”
“[A]cross the world regulators are looking to gradually turn up the regulatory heat on this ICO phenomenon,” Charles Hayter, CEO, and founder of digital currency comparison website Crypto Compare told CNBC.
The price of bitcoin tends to work in waves, as explained by experts, it increases reaches a new high point and then goes down again.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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