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Shanghai Exits Cryptocurrency Trading Market

Recently, CCTV News announced in one of their articles that 17 cryptocurrency trading platforms will close their doors in Shanghai. Binance, BTCChina, Lhang, Bitekuangs, SZZC, 51SZZC, BitBill, Hanbiwang, FreeWillex, ICOAGE, ICOrace, 19800Net, 911ICO, ICORaise, ICOfox, ETCWin and ICO17 officially declared that they will stop the ICO operations and will exit the market soon.

The ICO Rise In China

Based on a report written by the National Committee of Experts on the Internet Financial Security of Technology of China, the number of completed ICOs in 2017 was unexpected. Before 2017, only 5 ICOs completed their goals. Between January 2017 and July, there were 65 ICOs with an investment total of $2.6 bln.

But this changed since the PBOC’s announcement from September, 4th. They recognized it as a funding form unapproved by the government. The Shanghai city government and Shanghai municipality requested that all cryptocurrency trading platforms should stop trading by September 30th.

By now, 90 percent of ICOs have been checked and the funds have been successfully delivered to the investors. A huge issue in this process is the fact that some investors don’t want a refund. In fact, they believe they can own the tokens as it’s being traded overseas. Moreover, they rightfully request that the refund should be with the current token price and not the ICO price. Shanghai regulators responded that their interest is to protect the investors funds.

Hong Kong, Japan, South Korea – The Winners?

In an interview for South China Morning Post a few days ago, Leonhard Weese of Bitcoin Association  predicted that Japan, South Korea and Hong Kong will win out of this deal. And not from the Cryptocurrency point of view only. Events, Conferences and any meeting related to cryptocurrencies will avoid China starting now. Unlike China, Hong Kong is known for their friendly regulations regarding the Bitcoin. As a proof, Hong Kong’s Bitfinex became a major bitcoin trading company.

As CNBC announced, The Blockchain Global Summit managed by BitKan changed its location because of this. The summit location is now in Hong Kong instead of Beijing. Even though Beijing increased its political relations with Hong Kong, it doesn’t control it yet. Therefore, Hong Kong is still a cryptocurrency friendly place.

As a conclusion, China’s ban on cryptocurrencies don’t have the success wanted. Instead, it helps Japan, South Korea and Hong Kong. Traders, conferences and bitcoin related businesses are going there. The ban impact affects not only the cryptocurrency market, but the China’s economy.

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