Friday, 27 May 2022
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Will China burst the cryptocurrency bubble?

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China grabbed a lot of headlines after the ban of cryptocurrency exchanges and the fluctuations in the prices of OneCoin, China’s own cryptocurrency. Being one of the world’s greatest economic forces, it  has been also a strong player impacting the cryptocurrency pricing roller coaster. There are still a lot of miners and traders dealing with well known cryptocurrencies in the country and it will be very interesting to follow up and see how the crypto related industries are developing in China.

Ban on cryptocurrency not to last:

In September 2017, the ban on cryptocurrency exchange was imposed. However, in 2018, the ban is speculated to be lifted. Bobby Lee, founder of BTCC stated that the ban on cryptocurrency exchange can be lifted anytime and they might get their license reinstated. The ban was imposed considering bitcoin trading as a threat to its economy and now, people are expecting the ban to be lifted soon.

Chinese cryptocurrency OKCoin to launch in South Korea:

Well, OKCoin is not the first Chinese cryptocurrency to be launched in South Korea. Last year, there were many cryptocurrencies which moved their operations to South Korea. Within 1 month, the operations will be shifted to South Korea. As per Chris lee, the step is taken to expand the cryptocurrency in the global market. The ban imposed on exchanges in China has also affected this decision where the company can explore more markets.

Bitcoin falls the lowest in China:

One of the breaking news was the downfall of bitcoins in china. Starting of 2018 came with extreme decrease in the value of cryptocurrencies where the one to get the lowest was bitcoin. Not only bitcoin, the losses did impact other cryptocurrencies as well like Ethereum and Ripple. Ethereum declined 19% straight while Ripple declined around 26%. The price of Bitcoin dropped to $12,000 which is the lowest till now.

Along with this, China has targeted the websites and applications offering cryptocurrency exchange for stopping the trade. However, Bitcoin made a little comeback on Monday with the increased price of $14269. The central bank ordered all the banks to stop all the cryptocurrency trades while prohibiting the exchanges.

Thus, a lot of domestic and international cryptocurrency companies have started to move around for global exploration after the ban. After banning the exchanges, now central banks are targeting the applications and platforms offering cryptocurrency trading or exchange services.

While there are speculations about the lifting of ban, the central bank is making the ban more robust covering the applications and different platforms providing exchange or trading. With the crackdown of cryptocurrencies, it is tough to predict the future of cryptocurrencies in China.



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