//Bitcoin Price Drops on News That Chinese Exchanges Will Close

Bitcoin Price Drops on News That Chinese Exchanges Will Close

The bitcoin price has fallen below $3,000 at Chinese markets after news that the People’s Bank of China (PBoC) will suspend trading at Chinese bitcoin exchanges.

Litecoin creator Charlie Lee tweeted that Chinese bitcoin exchanges OKCoin and Huobi are meeting with regulators today, Friday. Lee hinted that they will follow BTCC’s lead and suspend their trading platforms, potentially leaving Chinese traders without access to high-liquidity order-book exchanges.

OKCoin and Huobi told regional cryptocurrency news service cnLedger that they had not been contacted by regulators, but Lee – whose brother is BTCC CEO Bobby Lee – said that these two members of China’s “big three” bitcoin exchanges  are meeting with regulators tomorrow.

BTCC cited the central bank’s ruling on initial coin offerings as the reason for its closure. However, an official Chinese news source reported that the Shanghai Office of Finance had “verbally halted” bitcoin exchanges from operating within the city.

A separate statement issued by a member of a self-regulatory agency established by the Chinese central bank cited an unnamed government regulatory who said it was “certain” that the government would ban all bitcoin exchanges within the next few months.

The markets plunged below $120 billion in response to the reports and BTCC announcement, with the global average bitcoin price dropping below $3,000, its lowest mark in more than a month. Lee’s creation has fared even worse. The litecoin price dived over 20% in the past day alone; it is currently trading around $45 after falling as low as $36.

Overall these tumultuous events should benefit the cryptocurrency community over the long term because rumors about a potential Chinese bitcoin exchange ban will no longer be able to throw the markets into turmoil.