China has become a very complex area for centralized Bitcoin service providers to thrive. That issue has become even more prevalent in recent weeks, as five different Bitcoin and altcoin exchanges shut down in quick succession.
In the end, it won’t matter all that much whether these platforms are operational or not, as it seems unlikely that the Bitcoin revolution can be stopped.
China Apparently Remains Anti-Crypto
In the early years of Bitcoin’s price surge, many people pointed at China as the main catalyst. It was the region where most of the perceived trading volume originated from. Whether that was legitimate volume, or primarily wash trading, is still a topic of debate even today.
In recent years, the situation has changed significantly. Chinese officials have made it clear how the trading of cryptocurrencies would be scrutinized and supervised at all times.
This creates a rather hostile working environment, forcing numerous crypto exchanges to find greener pastures around the globe.
5 More Exchanges Shut Down
As the governmental scrutiny in China intensifies, trading platforms come under increasing pressure. It is not too surprising to learn that some of the smaller companies decide to throw in the towel while they still can.
The result is a strong of exchanges shutting down throughout November 2019. A total of five exchanges have either shut down or completely or no longer allow Chinese customers to make use of their services.
For Bitsoda, Akdex, and Btuex, the decision to exit the crypto market – perhaps temporarily – was made in the final two weeks of November. Btuex is the only platform that will actively attempt to reopen overseas, albeit no official timeline has been provided at this time.
For Idax, the decision was simple: bar all Chinese users from the platform as quickly as possible. The company has run into other problems since this announcement, thus it remains to be seen if it has any future at all.
The Biss “Arrests”
Biss is the only Chinese exchange to try and cooperate with local policymakers. They expect this move to be successful, which would allow them to resume their services in the very near future.
Unfortunately for the company, it will not evade governmental scrutiny all that easily. Domestic reports claim several individuals associated with the company were arrested. Not much information has been provided since that report surfaced.
As is always the case with China, any news coming out of the country can be falsified to fit a certain narrative. This appears to be the case more often than not when it comes to cryptocurrencies, for some unknown reason.
Does it Matter in the end?
China has lost its position of relevance in the cryptocurrency industry quite some time ago. More specifically, that applies to centralized trading service providers. It seems plausible to assume the government will keep cracking down on any venture where humans can interfere with the processing of funds.
Despite this government intervention, China is still showing plenty of interest in Bitcoin.
The country’s P2P and OTC trading services are still in high demand these days. Not all crypto trading has to happen through centralized environments.
This is particularly true for countries where the government tries to limit consumer freedom at every possible turn.