Chinese Exchanges to Continue International Operations, Potential Comeback?
BTCC, Huobi, and OKCoin, the three largest bitcoin exchanges in China that were recently ordered by the Chinese government and local financial regulators to shut down, will still continue their international operations. The BTCC development team in particular emphasized that BTCC.com and Mobi.me, two international bitcoin trading and service platforms, will continue serving its global user base.
“BTCChina made the decision to shut down its exchanges after considering this announcement by Chinese regulators. BTCC is a separate company from BTCChina. BTCC Pool, BTCC USD Exchange, BTCC DAX, BTCC Mobi, & BTCC Mint are not affected by this change. BTCChina Exchange and BTCChina Blockchain+ have enough funds to accommodate all customer withdrawals, including CNY, BTC, LTC, BCC, & ETH,” said BTCC.
OKCoin and Huobi, two exchanges that were granted leeway by the Chinese government to operate until the end of October, also noted that they will continue to cooperate with the central bank and local authorities to potentially relaunch their trading platforms in China in the upcoming months.
Many analysts including long-time bitcoin investor Jon Creasy explained that the nationwide ban on Chinese exchanges can be temporary. Creasy further noted that there exists a possibility of the reelection of President Xi Jinping in November of this year influencing the government’s take on bitcoin and its markets.
“Historically speaking, President Xi Jinping has been one of the largest advocates of free markets China has seen in quite some time, and I expect this trend to continue. But for now, Mr. Xi must appeal to the people who keep him in power: the Communist Party. In my opinion, banning Bitcoin exchanges is nothing short of temporary glad-handing,” said Creasy.
More importantly, Creasy stated that he could imagine a potential situation in which the Chinese government encourages cryptocurrency trading and activities in the future. He wrote:
“My prediction is this: as soon as President Xi Jinping is reelected — and he will be — conservative, free(er)-trade legislation will be put in place, and Bitcoin exchanges will be reinstated. In fact, I wouldn’t be surprised to see the Chinese government encouraging certain exchanges and cryptocurrencies, once this legislation hits. NEO already seems to be in their good graces.”
As many experts including BnkToTheFuture co-founder and CEO Simon Dixon who were closely communicating with local exchanges and trading platforms in Shanghai amidst the imposition of the nationwide ban on bitcoin exchanges said, key figures in the Chinese bitcoin and blockchain sector including Bobby Lee are encouraging continuous development of bitcoin and blockchain in the region.
It is possible that BTCC and other international platforms operated by Chinese bitcoin exchanges could permanently relocate to Hong Kong, Japan and South Korea, considering that most neighboring countries in Asia have friendlier and more efficient regulations for bitcoin businesses.