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Bitcoin Markets Rebound as More Chinese Exchanges Plan to Close Operations



Regulation

According to blog posts from two of the largest bitcoin exchanges in China, Huobi and Okcoin will be closing operations on October 31. Meanwhile, bitcoin markets have recovered back to the $3,640 range following the announcements. 

Also Read: Bitcoin Exchange BTCC to Halt Trading as Regulatory Storm Brews in China

Huobi and Okcoin to Close Operations on October 31

Bitcoin Markets Rebound as More Chinese Exchanges Plan to Close OperationsBitcoiners have been waiting for the two Chinese exchanges, Huobi and Okcoin, to announce that they were closing operations. Earlier this morning, the Chinese financial publication Caixin revealed that the two exchanges may stay open longer because they have a lot of users and the companies did not participate in the ICO process. Following this story, on September 15 at 9:30 pm Beijing time both trading platforms announced they would be closing trading operations on October 31. Both blog posts from each exchange are nearly identical.  

“On September 30 we will inform all users about stopping our trading services,” explains Okcoin and Huobi’s announcement.

On October 31, in turn, we will gradually stop all the digital asset exchange operations associated with the RMB trading business.

Video Verification Required

Bitcoin Markets Rebound as More Chinese Exchanges Plan to Close Operations
Customers must complete the video verification process to comply with China’s AML laws.

The exchanges mention the possibility of waiting periods for those with more than 50,000 yuan worth of digital currency. Further, refunds may take 10-15 days to process and both exchanges have stopped accepting new registrations. Those holding bitcoin cash (BCH) should be able to withdraw those funds by September 20th the trading platforms explains. To add to all the difficulties both exchanges are also requiring video verification for users as well.    

According to China’s anti-money laundering requirements, all the coin holders still need to complete video certifications —  For video authentication queuing issues, please wait patiently, do not close the video in the session window.

Huobi: ‘This is Not the End’ as Bitcoin Price Bounces Back

Following the announcements from Huobi and Okcoin the price of bitcoin spiked in value reaching $3,640 across global exchanges after dipping below $3K earlier this morning. The extreme comeback has astonished traders as the decentralized currency climbed over $600 in less than an hour.  

Bitcoin Markets Rebound as More Chinese Exchanges Plan to Close Operations
Bitcoin bounces back climbing over $600 higher in less than an hour.

Huobi explains to its users that this is not the end of blockchain technology and bitcoin in China stating, “such a decision is not the end, but a new beginning, the industry is more healthy and this is more development of the beginning of compliance, coins will continue in the premise of compliance, for our users.”

What do you think about the two large bitcoin exchanges closing operations in China on October 31? Let us know in the comments below.


Images via Pixabay, Bitstamp, and Huobi. 


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Source: news.bitcoin.com

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