Bitcoin remained at session lows on Tuesday, as the digital currency eased below $3,900, forfeiting its recent post-China-ban gains.
The global value of bitcoin has plunged in recent days amid speculation that the Chinese authorities would shut down the trading platforms following a ban on initial coin offerings earlier in the month. China and Russian Federation are also reportedly investigating establishing their own version of bitcoin, but to date, no plans have gone beyond the wishful thinking stage, at least publicly. The crimes included illegal fundraisers, trafficking, smuggling, and money laundering.
The BTCC and Okcoin platforms, which operate in yuan, accounted for 22 percent of the world trade in Bitcoins in early September, according to reference website bitcoinity.org. The report further said that the proposal was discussed by a committee of government officials. The Wall Street Journal hears from sources that China is now going to go forward with a comprehensive ban on smaller bitcoin trading channels. It indicated that criminals used the currency to commit crimes. "Regulators based in Shanghai have taken similar measures, "she adds, citing" the fight against the financial risks ".
The China Insurance Regulatory Commission recently asked insurance firms to report typical cases and data on new types of fraud. Most analysts do not believe it will be the end for bitcoin in the country.
"All the other countries have digital currencies and are making important decisions about it, so it doesn't make sense for China to dismiss it out of hand".
The central bank's move was seen as a way for Beijing to gain control over crypto-currencies, which are created using blockchain technology and are sold and bought online without any government regulation.
The blockchain business, a form of decentralized or fluid database, which keeps track of digital transactions, is "supported by regulators and actively promoted by financial institutions", Xue said.