Bitcoin: Cryptocurrency Trading of the Yuan Dropped to Record Low

Trading in cryptocurrencies and ICOs has been prohibited in China

The global cryptocurrency trading volume of Chinese investors worldwide has fallen to one percent. Before the regulation in the autumn of last year, the share of the Yuan was still more than 90 percent. In 2014, it was around 70%. The statistics come from Beijing’s People’s Bank of China (PBoC).

As the newspaper “Global Times” reported , the Chinese Yuan’s share has gone down to less than 1% in the global bitcoin transactions. According to the Xinhua News Agency, 88 online trading venues and 85 Initial Coin Offerings (ICOs) have been closed since September last year under China’s state regulation. Since autumn 2017, cryptocurrency trading and ICOs has been prohibited in China.

The head of the research department of the online financial institution Zhongguancun is satisfied with the development. The numbers suggest that the central bank’s strategy is successful, Guo Dahzi said. It was expected in advance that the Bitcoin trade volume of the yuan would decline after the announcement of the trade ban. Public authorities report that they have successfully prevented the ban on investors with dubious investments from losing their money. Only bitcoin mining is allowed, with China still leading the sector.

Central Bank Does Not Want To Lift Ban

The Beijing Central Bank’s report also states that no permanent lifting of the ban is planned. The share of the Yuan in trading in cryptocurrency should therefore, not rise so soon. Bitcoin’s course has been a roller coaster ride ever since the ban. Due to the risks that regulators consider to be associated with cryptocurrency trading, the People’s Bank of China (PBoC) will not lift the ban so quickly.

Network Locks Enforce Prohibition

In order to better manage the activities of its own citizens, numerous online trading venues and providers of ICOs have been blocked for all Chinese Internet users. Of the new network locks, the PBoC is said to affect a total of around 110 websites. Among them are well-known providers such as Huobi or Binance. These have often been used by Chinese investors in the past. Alone with the payment provider Alipay, Alibaba group closed 3,000 accounts, because it has demonstrably swapped Yuan in various crypto currencies. The state closure of the accounts also affected other financial service providers.

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