The shock of cryptocurrency exchange ban in China hasn’t still faded and the crypto currency world has received yet another jolt – at least in China – with reports indicating that Chinese authorities have banned executives of crypto exchanges from leaving the country.
While the exact English wordings of the ban are not available a rough translation indicates that executives of cryptocurrency exchanges are not allowed to leave Beijing. The executives have been ordered to cooperate with the investigation that is said to be a sort of clean-up drive in Beijing.
Australian media claims to have direct information about the ban with a report on Australia’s Financial Review (AFR) stating that they have confirmed reports via a source “close to one of the biggest exchanges, Huobi,” that the exchange’s founder, Li Lin, was required to “report to the authorities and cooperate with their work at any time.”
The ban on cryptocurrency exchanges has taken a toll on the trading volumes with Chinese trading volumes now accounting for only around 5% – 10% of bitcoin’s or ethereum’s global trading volumes. Further, prices of the cryptocurrencies at Chinese crypto exchanges are much lower than on crypto exchanges in other countries.
The ban has sidelined the country while the rest of the world has started moving forward with bitcoin price reaching $4000 levels down to $3000 in a matter of just a few days.
With the ban effective and government looking into crypto exchanges, there are those who are speculating an action against miners, a $2 billion importing industry which may find it difficult to operate without the ability to sell their bitcoins on the market. While reports have suggested that the ban might be temporary, WSJ says that the ban is a permanent one, with apparent plans to declare even Off the Counter (OTC) trading as illegal.
If that’s the case, the Chinese miners will have a hard time operating and chances are they will not be able to recover from the immense loss. As such, miners are seemingly preparing for the worst, with some thinking of relocating to neighboring countries or to very cold areas, such as Iceland.