Bitcoin tumbles as Chinese exchange says it will halt trading

China plans to ban trading of bitcoin and other virtual currencies on domestic exchanges, Bloomberg News reported Monday.
China plans to ban trading of bitcoin and other virtual currencies on domestic exchanges, Bloomberg News reported Monday.PHOTO: REUTERS

BEIJING (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 Thursday in a tweet. The decision was made after "carefully considering" the Sept. 4 announcement by Chinese regulators that outlawed initial coin offerings, he said.

The cryptocurrency has slumped about 21 per cent since Sept. 7. 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, according to people familiar with the matter, who asked not to be named because the information is private. Authorities don't have plans to stop over-the-counter transactions, the people said.

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