Bitcoin value takes a 10 percent hit from Chinese crackdown

Business & Technology

Top business and technology news for February 10, 2017. Part of the daily SupChina news roundup "The phone call: Trump acquiesces on One China Policy."

FILE PHOTO: Bitcoin (virtual currency) coins are seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, May 27, 2015. REUTERS/Benoit Tessier/File Photo - RTX2YBYD

  • Bitcoin trading shrivels under Chinese government’s glare / Reuters
    As a result of China’s determination to regulate the Bitcoin exchange market, the number of Bitcoins traded on BTCC, Huobi, and OKCoin — the three main exchange platforms for the digital currency in China — dropped significantly from 13.6 million on January 6 to around 120,000 on February 9. In January, the People’s Bank of China (PBoC) announced that it has started a wider and deeper scrutiny into major Bitcoin exchanges and held meetings with nine of them. This led to a temporary month-long suspension of Bitcoin withdrawal on major exchange platforms. China has been the world’s leading venue for Bitcoin trading and mining, with the big three taking up more than 90 percent of the global Bitcoin market as of January 11. For more on the status of Bitcoin in China, see this SupChina Q&A with Eric Mu, a Chinese entrepreneur who runs a Bitcoin mining facility and believes that “Bitcoin has outgrown the stage where a single government can profoundly affect its development.”
  • China’s stock market regulator vows to ‘capture’ more tycoons / SCMP
    Liu Shiyu, chairman of China Securities Regulatory Commission, said in an annual work meeting on Friday that China won’t tolerate any “capital market crocodiles…skinning or sucking the blood of retail investors” and vowed to bring them back to the mainland to face justice. Liu’s comments highlighted a prolonged efforts by Chinese authorities to crack down on market manipulators and more tightly regulate the stock markets. Last month, Xu Xiang 徐翔, once considered China’s top hedge fund manager, was sentenced to prison for five and and a half years for stock manipulation and insider trading. A week later, billionaire Xiao Jianhua 肖建华, the chairman of Tomorrow Group, went missing in his apartment in Hong Kong, apparently in connection with corruption investigations by mainland authorities.