China Sets Deadline For Exchange Closings

Crime, FinTech, ICO News, Investing, News, Regulation | September 15, 2017 By:

Although no official pronouncement has been issued, reports are surfacing that indicate China’s cryptocurrency exchanges have been told they are to voluntarily shut down.

A social media document has been posted to China’s Weibo network that indicates steps that must be undertaken by the exchanges. Although the provenance of the documents can’t be questioned, its content jibes with what exchanges claim they have been told verbally. The document said investor funds need to be placed in a new bank account, while existing accounts have to be reported to the People’s Bank of China, the central bank.

The announcement indicated shutdown notices have to be posted before midnight tonight local time, and immediately stop new user registrations.

The BTCC exchange has been joined by ViaBTC as announcing their closing, with BTCC stating a deadline of Sept. 30. BTCC has indicated that money can be claimed even after that deadline, although users were warned to take action “as quickly as possible.”

The moves follow a report last Friday that indicated a consortium of Chinese financial agencies, led by the People’s Bank of China, had decided to shut down its domestic exchanges. The consortium previously banned initial coin offerings (ICO) in the country and ordered funds derived from ICOs to be returned to investors.