China’s First Bitcoin Exchange Closes Its Exchange Business

Last week, the first crypto exchange founded in China, BTCC, exited the bitcoin trading market.

According to BTCC, it has exited the crypto business. In reports, the firm said that this is the result of the regulatory influence Beijing is using on crypto businesses. More so, BTCC noted it will now transition to blockchain-related efforts.

Moreover, the company stated it had sold its shares in the Singapore exchange ZG.com in May 2020. Also, many of the crypto exchanges based in China moved overseas years ago. This was the result of the first cryptocurrency crackdown back in 2017.

For a few weeks now, the government is tightening its grip on crypto businesses. Besides, the People’s Bank of China also targets Over-the-counter (OTC) businesses and crypto-related accounts. As per the local news, these P2P and OTC firms will have their accounts frozen. As a result, it also affects crypto brokers in the country, which are now moving away due to restrictions.

Following this, a member of BTCC operating in Hong Kong issued a report about the crackdown. He said that Mainland China’s restrictions would not affect its cash flow.

The member of the company said,

BTCC [Hong Kong] is not impacted for now because BTCC doesn’t provide trading of cryptocurrencies, but derivatives of cryptocurrencies. The company will now shift to building blockchain-based applications.

Let’s note that the government of China supports the use of blockchain. More so, it made it one of its centers in its fourth industrial change program.