Crypto Exchanges Plans to Stop Services During Alleged Crackdown

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Many Chinese digital asset exchanges have stopped or opted to dismiss operations this month as a response to an expected redoubling of the anti-crypto stance of Beijing.

On November 23, Bitsoda, an exchange, updated the public that regarding its decision to dismiss services.

 

Biss, another cryptocurrency exchange firm, had Announced that it was keenly working together in investigating its operation and planned to bring back its services as soon as the investigations are finished.

Ever since the announcement of Biss, it was reported that ten suspects in connection to the exchange were put under arrest by the authorities. Although there remains a little amount of information regarding the arrest, reports claim that that the governing bodies found that Biss violated the capital controls of China.

 

Blockchain Only Policy

 

According to Bloomberg, the recent developments in crypto represent the most significant clean up of the sector ever since the historic retreat of Beijing that dates back in November 2017.

 

A data gathered from Chainalysis, and a blockchain intelligence firm cited that Bloomberg’s report noted that out of 50 global cryptocurrency exchanges, only 20 are based in the region of Asia-Pacific, accounting to approximately 40 percent of bitcoin transaction in the first six months of 2019.

 

Within the Asia-Pacific region, Chainalysis indicated in their data that the lion’s share of exchanges is residing in China.

 

The reassertion of Beijing’s rigid stance has been construed as an attempt to prevent what is professed as the hypothetical excesses that are connected to crypto-assets trading. This is allegedly feared to increase after a substantial public Blockchain endorsement by the Chinese president Xi Jingping.

 

Since then, the state media told the public to remain coherent.

 

However, local traders feel nervous. As the Bloomberg States, Imtoken, a wallet app, publicized a twofold increase in Tether dealings among its 10 million customers on November 22. Allegedly, this is a response to the recent warnings from Chinese regulators. Generally, Tether is utilized as a vehicle to move between digital and fiat money.

According to the CoinMod report that, the crypto exchange firm IDAX has already halted withdrawing and depositing on its cold wallet after the disappearance of its chief executive.

After IDAX’s announcement, it was reported that the firm would stop to serve the users who are based in China and cautioned the public as the platform had seen a run on withdrawal earlier this week.

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