BTCC, China’s First & Oldest Exchange, Exits Bitcoin Business Amid Regulatory Pressures

BTCC Steps Down

BTCC, the corporation that formerly dominated Asia’s cryptocurrency market, has announced its withdrawal from the industry. In May 2020, the business announced that it had sold its shares on the Singapore stock exchange ZG.com. Most Chinese-based bitcoin exchanges were forced to relocate years ago during the initial cryptocurrency crackdown in 2017.

Tightening Hold Over Cryptocurrency

However, to reduce financial losses, the government is strengthening its hold over cryptocurrency. The People’s Bank of China is currently focusing on over-the-counter (OTC) companies and cryptocurrency accounts. The accounts of this targeted P2P and OTC firms will be frozen, according to local sources. This will impact bitcoin brokers in the nation, who now control the entire market due to the strict regulations.

Company Statement

The company’s Hong Kong division released a statement claiming that the move would not harm them. Sanctions imposed by Mainland China will not impair the firm’s financial flow, according to the company. It stated:

“Btcc [hong kong] not affected for now as btcc does not offer trading of cryptocurrencies, but derivatives of cryptocurrencies.”

Future Focus

The focus of the firm will now be on developing blockchain-based apps. The Chinese government encourages the adoption of blockchain technology and has prioritized it in its Fourth Industrial Revolution strategy.

Miners Hits The Hardest

While the government is targeting bitcoin exchanges, miners are the ones who took in the biggest hit. The government shut down several mining sites and imposed mining restrictions in crucial provinces. They also hampered the expelled miners’ activities, and many are now seeking refuge in other areas and nations.