Government issues closing order of Bitcoin exchanges in China

China's Bitcoin and Cryptonite markets have been ordered to cease their activities voluntarily by 15 September.

According to some leaked documents and statements from executives of trading platforms, issued on condition of anonymity, China's regulatory authorities have issued verbal orders indicating the actions to be taken by companies to end their activities. The allegedly alleged reason is for not having a license to operate in the country.

A document leaked on social networks in China reports a series of steps that markets must take during these closures. Although the document was apparently not received by the authorities of the exchanges, they say that the guidelines are similar to those verbally communicated to them.

The document, issued by the Beijing Office for the Internet Risk Settlement, points out how exchanges will need to coordinate with their local authorities after the announcements, clarifying how they will handle customer data and banking relationships.

Advertising

However, two other Bitcoin markets in China, BTCC and ViaBTC, had announced their closures. They both mentioned the statement of September 5 as the reason for this.

BTCC published a series of tweets regarding user withdrawals, noting that they will be able to get their money even after the closing date of September 30. In one of those tweets, the market suggested users "withdraw their funds as fast as possible."

Although not all China-based Crypt-Coin markets have formally announced they will close, one of the executives of the exchanges said there will be more announcements regarding this order. Markets such as Huobi and OKCoin will hold a meeting with regulators today, and are expected to announce plans to close their activities within hours.

The filtered document is as follows:

Before September 20 at 6pm, markets must have a clear risk-free plan, and send this plan to the office. The exchanges must deal with their claims and obligations in an appropriate manner, and ensure that investors' funds and virtual currencies are safe.
Before September 20 at 6pm, markets must determine a bank account, which will be used to deposit user funds. All other accounts in banks and other non-bank payment service providers will be canceled and reported to the Business Management Department of Banco Popular Chino.

Before September 15 at midnight, markets must publish a closing announcement, and announce a timeline to stop the trade of all virtual currencies. New user registrations will stop immediately after the announcement.
Creditors, controllers, managers, and major technical and financial teams of the markets must cooperate fully with the authorities during the clearing while remaining in Beijing
Markets should report their situation daily to local authorities before dismantling is completed
Markets should keep trading and stock data, and send these to local authorities immediately on DVD.
The document is signed by: The Office of the Beijing Group for Financial Risk Arrangements on the Internet.