BTCChina quits crypto business following China ban
Following the major crackdown on crypto activity in the country, BTCChina, China’s oldest Bitcoin (BTC) operator, announced that it has completely exited the crypto business. The company sold its stake in the Singaporean Bitcoin exchange ZG.com to an unidentified Dubai-based foundation, Chinese news agency The 21st Century Business Herald reports.
The Chinese government to ban crypto activity
Founded back in 2011 by Huang Xiaoyu and Yang Linke, BTCChina did a great job promoting Bitcoin (BTC) to Chinese investors and the Chinese general public.
The company claims it accounted for 80% of China’s global cryptocurrency trading. However, in October 2017, BTCChina was forced to stop trading cryptocurrencies amid the Chinese government’s ban on crypto trading.
Then, the company sold its exchange operations to a Hong Kong-based blockchain investment fund. However, BTCChina continued to operate under a new name — BTCC, available exclusively to customers with a Chinese IP address.
Later, rumours surfaced that BTCC was affiliated with BTCChina and that Yang still controlled the exchange. However company’s representatives have denied these claims.
Today, BTCChina said that it was exiting the Bitcoin business “in response to the Chinese government’s policy”.
However, last week, the company announced that it wasn’t affected by China’s crypto crackdown “because BTCC doesn’t provide trading of cryptocurrencies, but derivatives of cryptocurrencies”.
As we can see, in recent months, the Chinese government has been cracking down on the crypto industry, resulting in multiple closures of major crypto mining hubs in the country, including provinces like Sichuan, Yunnan, Xinjiang, Inner Mongolia and Qinghai. Also, major Chinese banks confirmed that Chinese authorities have also halted crypto-related transactions on bank accounts as well.
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