Nervous Chinese Exchanges Wait For Official Crypto Rulingbr>
Nervous Chinese cryptocurrency exchanges are scrambling following numerous reports that China is about to shutter their businesses.
China news service Caixin jump-started the issue last week, reporting that a consortium of financial institutions, including the central bank, had decided to shutter the exchanges. This came in the wake of a decision to ban initial coin offerings (ICO).
Bitcoin and other cryptocurrency prices took an initial hit, but now are in a holding pattern as official word of the ban is awaited.
Arthur Hayes, chief executive of crypto-currency trading platform BitMEX, told Reuters there is some skepticism on what the eventual ruling may be about. “I would assume that if China shuts down trading on continuous order books of the large exchanges, the price would drop below $4,000, or the price of the U.S. dollar price of bitcoin would catch up to where it’s trading equivalently in China,” he said.
Such exchanges as OKCoin and Huobi would be forced to close if there is an outright ban on exchanges. However, there may be some wiggle room in the eventual decision, allowing at least some institutional investors to continue trading, according to speculation. The ruling could come down soon, or may take several months to be finalized.