Bitcoin drops after Chinese exchange stops trading

Cryptocurrency is on a five-day losing streak amid government crackdown

Bitcoin: five-day losing streak. Photograph: Chris Ratcliffe/Bloomberg

Bitcoin: five-day losing streak. Photograph: Chris Ratcliffe/Bloomberg

 

Bitcoin fell for a fifth day, the longest losing streak in more than a year, after one of China’s largest online exchanges said it would stop handling trades by the end of the month amid a government crackdown on cryptocurrencies.

BTC China will immediately stop accepting new account registrations on its BTCChina Exchange, chief executive Bobby Lee said on Thursday in a tweet.

The decision was made after “carefully considering” the September 4th announcement by Chinese regulators that outlawed initial coin offerings, he said.

The cryptocurrency has slumped about 21 per cent since September 7th. It had risen more than four-fold this year amid greater acceptance of the blockchain technology that underpins the exchange method, global political uncertainty and increased interest in Asia.

China plans to ban trading of bitcoin and other virtual currencies on domestic exchanges, Bloomberg News reported Monday. The ban will only apply to trading of cryptocurrencies on exchanges. Authorities don’t have plans to stop over-the-counter transactions.

Shanghai Financial Service Office has also ordered to close down bitcoin trading platforms in the city, China Business News reported.

- Bloomberg