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Chinese “exchange ban” cause sell-off

A new article appeared on Chinese news media outlet caixin, claiming that Chinese authorities are looking to close cryptocurrency exchanges due to risks of money laundering. Caixin.com posted an article titled “虚拟货币交易所时代结束” (the age of crypto exchanges is over) and sparked off a massive sell-off that caused Bitcoin and ethereum prices to drop 5-10%. Whilst it was previously discussed that rumors are sometimes the precursor to legislation, this should be taken with a grain of salt. Due diligence needs to be done as to where the rumors come from (eg. state run media or just regular media). In this case, this rumor was posted on regular media with very little sources of information (no new quotes from government officials etc).

Here is how Twitter responded to this situation:

What we know so far:

  • Article was posted at 9:56PM, an unlikely time for real government announcements
  • Similar news was posted on Tencent news, perhaps interpreting same article?
  • BTCC, okcoin and Huobi have reported no notices or changes from the government
  • Article did not state any additional sources

Other media interpretations

Quartz : https://qz.com/1073049/the-ethereum-eth-price-and-bitcoin-btc-prices-are-crashing-on-a-china-trading-ban/?unique_ID=636405021008563934
8BTC: http://news.8btc.com/game-over-bitcoin-exchanges

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Disclosure: Authors are invested in cryptocurrency projects and have cryptocurrency holdings - including those covered on this website. 

Michael
I’m Michael Gu, Creator of Boxmining. I’ve been involved in the digital asset and Blockchain space since 2012. Something I immediately noticed was that accurate information is hard to come by in this space. More often than not, we find extremely biased information that exploits the complexity of blockchain to obscure facts. Having been around before bitcoin or blockchain was even “cool” meant that I had to do a lot of discovery myself, and along the way, I had many successes, but also made mistakes. I started Boxmining in 2017 mainly as a passion project, to educate people on digital assets and share my experiences. Being based in Asia, I also found a huge discrepancy between digital asset trends and knowledge gap in the West and China. So I leveraged my knowledge and positioning to bridge that information gap and let people know what is truly happening. This journey has been nothing short of exhilarating for me, starting from when I mined Bitcoin in grad school to appearing on China’s national television as an overseas expert on blockchain technology, and having the honour of interviewing leading crypto entrepreneurs, including Binance CEO Changpeng Zhao and FTX founder Sam Bankman-Fried.

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