thecoinrepublic.com
- China’s first ever cryptocurrency business has to close Bitcoin operations after a prolonged existing territory in the country
- China increases the crack down intensity, forcing Bitcoin miners to move their business outside the Chinese territory
- Cryptocurrency ownership is yet to be banned in China, however, mining remains completely off the grid
China had imposed a ban on mining Bitcoin and this resulted in a lot of small and large crypto platforms to transfer their business across the border. Even companies with a decade long operating period, the Asian Dragon, BTCChina, have also taken a step back from China because of the strict government regulations that have been intensifying every day. The result of such a crackdown has affected the crypto exchange in China harshly and the ban looks to be more permanent than temporary. BTCChina gave up on the crackdown after a prolonged existence in China.
China forces BTCChina out of the Bitcoin mining business indirectly
BTCChina is not bigger than most massive platforms like Binance, but it has been the most stable platform in China, as well as the oldest established exchange. BTCChina held the first-ever Bitcoin transaction in the Chinese territory. However, the company recently disclosed to the public that it has exited from all Bitcoin related businesses because of China’s Government policy. The ban imposed by the Chinese government only extends to crypto mining and not crypt asset ownership at an individual level. BTCChina has not departed from non-Bitcoin operations and its share was sold to a Singapore based exchange ZG.com. The BTCC name will live on but not in China. The Honk Kong branch will not stop any Bitcoin operations. However, BTCC will not be leaving the blockchain space and will continue to explore blockchain-based applications.
The growth trajectory of BTCChina was devastated after the 2017 policy in China when the country asked the banks to stop offering any cryptocurrency services. Most countries have tried to regulate cryptocurrency in their economies but the level of stringency that China is using has been by far the most effective. The policies have driven major mining exchanges out of the country, even the flourishing ones.
Crackdown will further heighten regulations
China’s policy against Bitcoin and cryptocurrency mining has fastened the weeding out process of the existing infrastructure. Even the supply of electricity has declined towards Bitcoin miners, making them find suitable countries with electricity supplies. Beijing has made it easier to dephase the decentralized network of Bitcoin as a currency in China. Businesses that were supported by cryptocurrency solely, have been found to face the ripple effect of the crackdown. BTCChina was amongst the last exchanges that did not exit the country. Platforms like Huobi, Binance and Okcoin have left the country as soon as the crackdown started to become serious.
Binance is the largest cryptocurrency platform and was founded in Shanghai. It relocated because of the crack down and has been operating boomingly ever since. Most cryptocurrency platforms are founded by the Chinese, but still, the country is extraditing the miners outside the borders.