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Sep 17, 2017 05:42 PM IST | Source: Moneycontrol.com

Bitcoin falls below $3000 as Chinese regulator orders cryptocurrency exchanges to shut shop

According to a policy document seen by Chinese news outlet Caixin, all cryptocurrency exchanges are to submit detailed plans to exit the market by 6:00 pm Beijing time on September 20.

BySidhartha Shukla
Bitcoin falls below $3000 as Chinese regulator orders cryptocurrency exchanges to shut shop

There has been a bloodbath on cryptostreet as digital currencies incurred further losses after Chinese regulators asked all Beijing-based cryptocurrency exchanges to halt new user registrations by midnight of September 15.

According to a policy document seen by Chinese news outlet Caixin, all cryptocurrency exchanges are to submit detailed plans to exit the market by 6:00 pm Beijing time on September 20.

The ban on exchanges comes after China banned initial coin offerings (ICOs) in the beginning of the month.

Earlier this morning, Chinese bitcoin exchange ViaBTC announced to shut down its website by the end of the month.

In a statement ViaBTC said, “As a responsible cryptocurrency exchange platform, ViaBTC has made a serious decision to carry out the spirits of the policy - we will officially close the website www.viabtc.com for exchange business in Mainland China on September 30th.”

Before the shutdown, the company will complete processing of all withdrawal requests of Chineses Yuan and cryptocurrency assets. However, ViaBTC’s mining pool (pool.viabtc.com) and cloud mining services will not be affected.

ViaBTC becomes the second Chinese crypto exchange to formally announce the closing of its exchange platform.

On Thursday, China’s oldest bitcoin exchange BTCC announced that it stop all trading effective from September 30.

This new development was followed by massive sell-off across the board. Almost all the top 100 cryptoassets by market cap were down by double digits at the time of filing.

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Bitcoin was fell below levels of USD 3,000, a 40 percent correction from its all-time high, for the first time since last month.

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Other major cryptocurrencies like ether, bitcoin cash, litecoin and ripple were down 21 percent, 30 percent, 33 percent and 16 percent, respectively at time of filing, as per coinmarketcap.

The total cryptocurrency market cap also fell below USD 100 billion for the first time in seven weeks and stood at USD 99.4 billion at press time, according to coinmarketcap. This is a correction of over 40 percent from its peak value.

Despite China’s crackdown, bitcoin enthusiasts remain positive on the future prospects of the cryptocurrency and sees this price correction as temporary setback.

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