China Might Try Blocking All the Bitcoin Transactions in the Nation

The authorities in China might have started moving towards a broader shutdown on Bitcoin including OTC (over-the-counter) and P2P (peer-to-peer) trading exchanges. By utilizing the Great Firewall for blocking the IP addresses, the access to foreign bitcoin exchanges can also be blocked. As such, the network of bitcoin transaction would remain completely disrupted in the entire country. Even the bitcoin miners are now worried about the possible restrictions on their operations as well.

The authorities in China have informed various industry executives in some closed-door meeting held in Beijing on Friday about their possible move towards a broader clampdown on bitcoin trading in China. A regular news outlet was seen reporting that the regulators have decided on putting a comprehensive ban on the binary trading channels for selling or buying of the virtual currency in China. This news goes beyond the plans of shutting down the commercial bitcoin exchanges.

It was further detailed in the publication that until last week, several entrepreneurs in the Bitcoin circles of China had thought about the Chinese authorities shutting down only the commercial bitcoin trading. They assumed that the Chinese authorities would be tolerating the OTC or P2P bitcoin exchanges & platforms which would enable the sellers and buyers to find each other and thus, trade directly.

This news has come after Beijing had ordered the shutting down of the bitcoin exchanges, which several have complied with already, including Okcoin, Btcchina, and Huobi. Following the track of a sudden crackdown in Chinese regulatory, the prices of bitcoin had initially fallen down. However, it has recovered since then. The trading volume of China has dropped to the 4th position in the global standards. This is because the traders are now mitigating their business to OTC markets & exchanges located outside of China. The trading volumes on Localbitcoins have seen a rise exponentially.

It was last week that Bitkan had suspended the OTC cryptocurrency trading service offered by the same. The suspension had begun on 14th September and has affected the mobile app of the platform along with the site for BTC & BCC OTC services.