The big news of the day is how China is allegedly banning all exchange activity. As was to be expected, that information is completely false. Or at least where the major exchanges are concerned. It is evident some smaller platforms are shutting their doors due to ICO regulation. However, this doesn’t affect big companies such as Huobi, BTCC, and OKCoin. It is evident this fake news sends shockwaves throughout the community once again.
It is not the first time there is some confusing news regarding Bitcoin in China. Local officials have no love lost for cryptocurrency. Moreover, the recent ICO ban is causing a lot of confusion. Unlike what some news outlets claim, China has no plans to ban cryptocurrency. Nor are they suspending exchanges at this point in time. It is unclear who started this fake rumor but rest assured it will create a lot of volatility. After all, the Bitcoin price has already taken a big hit due to these fake rumors.
Fake Exchange News Causes Brief Bitcoin Price Crash
For some unknown reason, the world still pays a lot of attention to what China is doing. The country has a mixed history when it comes to Bitcoin. A few previous statements have been misinterpreted as well. It seems this news is another one of those incidents. Unfortunately, the news is spreading quickly on a global scale, with negative price trends as a result. Rest assured the markets will recover pretty quickly, though.
The overall Bitcoin community isn’t too pleased about this “hoax”. That is only to be expected, as this fake news is causing a lot of unnecessary problems. China has never had plans to ban cryptocurrency, let alone go after exchanges again. After all, they already did so earlier this year. Ever since, all companies upgraded their KYC and AML procedures. There is no exchange not complying with Chinese regulations as far as we know. The only companies in violation are those involved in listing and creating ICO tokens.
The fact some exchange owners in China are spreading this rumor isn’t helping much either. Huobi and OKCoin have unofficially confirmed this suspension news is fake. It seems one of the original sources of this news is Caixin. This company is usually spot on with their information, but it appears some misinformation was distributed to whoever wrote that article. It is certainly possible Chinese regulators will come up with something new in the future. However, for now, there is no suspension whatsoever.
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