More digital currency exchanges close amid investigation rumours

Two Beijing bitcoin trading platforms join at least three other major exchanges in notifying clients of a trading halt, amid rumours regulators are seeking their top executives in ‘cooperating with investigation’ of the sites

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An attendant holds a bitcoin sign during the opening of Hong Kong's first bitcoin retail store February 28, 2014. PhotoL Reuters

Published: 9:30pm, 18 Sep 2017Updated: 1:12pm, 20 Sep 2017

Two Beijing-based bitcoin trading platforms have joined at least three other major exchanges in notifying clients of a halt in trading, amid rumours that Chinese regulators are seeking their top executives in “cooperating with investigation” of the sites.

Huobi and OkCoin announced over the weekend they had been issued with instructions from the authorities to stop providing renminbi-denominated transaction services on all digital assets by the end of October.

Not for long? Huobi and OkCoin have been told to stop providing renminbi-denominated transaction services on all digital assets by the end of October. Shenzhen-based exchanges Bitkan and ViaBTC as well as Shanghai-based BTC China last week were told to cease all bitcoin trading in China by the end of the month. Photo: Reuters

Customers can withdraw cash from their accounts and starting from 9.30pm Friday, any renminbi top-up would be automatically rejected or returned, the two said.

The decision echoed a similar one made by Shenzhen-based exchanges Bitkan and ViaBTC as well as Shanghai-based BTC China last week to cease all bitcoin trading in China by the end of the month.

Amid the intensified crackdown, Chinese regulators have also asked executives and major shareholders of the trading sites to assist with further investigations, with some have been advised to “stay in Beijing to help ensure the orderly cleanups [of the system] ” by investors, according to a report carried by Beijing News on Monday, citing source familiar with the matter.