Chinese Crypto Exchanges Blocked, Bitcoin Price Suffers Another Setback

As the market was recovering from the Binance episode, today several Chinese exchanges are reportedly blocked, resulting in Bitcoin dropping under $9K.

After the crackdown on ICOs and tightening of regulations on cryptocurrencies, it appears that China is getting into another panic about the exchanges that facilitate trading the cryptocurrencies in the first place.

The incident at Binance that caused the price of Bitcoin to sink significantly while bots were making some shifty altcoin sales led the cryptocurrency exchange to shut down withdrawals.

In addition to this, some exchanges operating in China have found themselves offline in the country on Friday, causing investors to suspect that the government might have been involved in blocking their access to the Chinese public.

Among these exchanges are Binance itself, BitMEX, and Bitfinex, all of which show up as offline to Chinese investors.

The effects have been devastating to Bitcoin itself, with the cryptocurrency experiencing a massive drop in value of roughly 12 percent, although the price is recovering slightly as we are covering this.

Earlier in the day, Bitcoin’s price saw a low of $8,513 and has since recovered to a price of around $9,000.

Although the Chinese government has de-facto banned cryptocurrency exchanges from operating in the country, the measure was carried out in a very ambiguous manner.

“China will not kill it all, because China would suffer a setback if cryptocurrency turns out to be well accepted internationally one day. However, the government does not [tolerate] using cryptocurrency to harm the economic interests of its people,” said an anonymous Beijing lawyer speaking to the China Money Network.

He added that there is “no evidence” that the Chinese government is involved, but admits that it might have been a reaction from regulators to the Binance incident, aiming to protect Chinese citizens from the ripple effects that it could have.

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