While the global crypto market slowly stabilizes, things stay adverse within China. The nation breakdowns on Bitcoin mining after asking financial institutions to refrain from using crypto. Amid the ongoing situation, BTCC, China’s oldest cryptocurrency exchange, also shuts down its proceedings.
BTCC is known for starting the first Bitcoin reading platform in China. Now the exchange is closing to focus on blockchain-based apps. As expected, the reason behind the shutdown is the government policies. The exchange even sold its stake in ZG.com (Bitcoin exchange registered in Singapore) back in 2020. China has not banned cryptocurrencies, but its new policies are highly adverse to their adoption.
What’s Next for BTCC?
While BTCC is leaving China, it is not leaving the Hong Kong region. The platform has made clear that it is not entirely leaving the blockchain circle. By focusing on blockchain apps, the exchange will maintain its prevalence in the sector.
While China is not supporting DeFi, it still understands the use-cases blockchain tech provides. BTCC started back in 2011 with the help of Yang Linke and Huang Xiaoyu. It even became the world’s largest cryptocurrency exchange, holding 80% of the worldwide trades. But the platform was devastated in 2017 and completely shut down in 2021 after China stopped banks from using cryptocurrencies services.
First Phase of the Exodus
China stopping crypto is not a sudden move as it even stopped providing electricity to BTC miners. This forces them to search for greener alternatives somewhere else. While Bitcoin is garnering global adoption, it is still far away from being accepted as a currency. BTCC is not the only Chinese exchange leaving the sector as Okcoin, Binance, and Huobi have left the nation. Now Binance has become the largest cryptocurrency exchange worldwide.
Binance started in Shanghai; however, it shifted to the Cayman Islands quickly. After the crisis in 2017, BTCC sold its operations in 2018 to a Kong Kong-located blockchain investment fund. However, the exchange continued its branding to customers with a non-Chinese IP address. Okex and Huobi are also restricting Chinese residents from accessing particular crypto solutions. Huobi even discontinued its mining solution for users within China.
Miners have not stopped their proceedings despite the adverse situations in the nation. The reason why mining became popular in China was its cheap electricity. China shared almost 65% of BTC’s total hash rate before the final crackdown. Now, the majority of the miners are shifting to western regions for affordable and cleaner energy sources.
While China continues its efforts to restrict cryptocurrencies, the oldest exchange in the nation shuts down. BTCC, created back in 2011, once held the title of the biggest exchange in the world. Now, the platform is shutting down in the country and merely focusing on blockchain apps. However, BTCC is not alone in the process as more exchanges are leaving China too.