Bitcoin took another hit, falling more than 5 per cent to trade below US$4,000 as China’s Bitkan said it would suspend its over-the-counter (OTC) bitcoin and bitcoin cash trading services from Thursday.
The move is in response to the recent ban on the practice of initial coin offerings (ICOs), Bitkan said in the statement. It said its bitcoin wallet, as well as the deposit and withdrawal functions of the digital assets will not be affected.
Over-the-counter bitcoin trading is popular among investors as it allows them to trade outside the online exchanges and access competitive pricing.
Last week, media reports, citing unidentified sources, suggested that Beijing is planning to proscribe the trading of virtual currencies on domestic exchanges. However, none of China’s largest exchanges – Huobi, OkCoin and BTC China – have halted trading.
“People in China will be more careful about marketing these events, and a lot of that marketing activity will come to Hong Kong in the form of conferences and communities,” said Weese.