Chinese authorities have warned local cryptocurrency companies against trading cryptocurrencies.

The warning caused at least five cryptocurrency exchanges to block their operations from users.

Chinese President Xi Jinping, who earlier announced his support for the development of blockchain technology in the country, caused confusion among Chinese citizens about the government’s stance on the blockchain and crypto industry.

But the Chinese government later provided a clarification on several media outlets telling that the government approves of the blockchain but does not approve of cryptocurrency trading.

Among the lobbying and monitoring bodies in this field in China is the Chinese Central Bank, which is the one who ordered the suspension and closure of cryptocurrency trading and trading companies.

Read:6 Concerns for Investors in the World of Cryptocurrency

He also cautioned investors against investing in cryptocurrency deals.

Since the Chinese government’s 2017 decision to ban initial offerings and crypto trading, recent restrictions on companies operating in the cryptocurrency space have been the biggest obstacle to the industry.

The purchase of cryptocurrencies such as Bitcoin and the trading of Ethereum with traditional cash were previously banned.

Crypto trading has remained popular through companies that provide exchange services.

Five cryptocurrency exchanges closed in China after government warning

The new wave of restrictions has caused the price of Bitcoin to drop to its lowest level in six months.

The Asia Pacific region hosts more than 50 crypto trading platforms.

It accounted for 40% of bitcoin transactions for the first six months of this year, mainly in China, according to a Chainalysis report.

Last week, the Chinese exchanges “Bitsoda” and “Akdex” announced the end of their services, followed by an announcement from the “Biss crypto” exchange that they had stopped their operations, which we referred to in the topic:

Close the Beijing-based BISS trading platform

as such announced Btuex announced on Monday that it will close its doors following the orders of the Chinese government.

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It will reopen later only to provide services to international users exclusively.

Idax also stated that it plans to focus on overseas users and will not be of service to Chinese users.

The Chinese government wants to seize the crypto market:

Katie Talati, a principal researcher at Arca in Los Angeles, said the recent advances by the Chinese government are a way to gain firm control over the country’s crypto market, such as exchanges, mining companies and token issuers.

Read:Learn about the details of the dispute between “DeFi Pulse” and the decentralized trading platform “1inch”

Katie also believes that China is going in the same direction as its neighbor Japan, which has a clear system of regulations for its cryptocurrency business.

The uncertain future of cryptocurrencies in China has caused traders to temporarily move their digital assets to safer places

Cryptocurrency wallet operator ImToken reported that Tether USDT transactions rose to $66 million on the day China issued the crypto trading warning.

Justin Sun, founder of Tron, maintained his optimism and said that despite recent developments, the future of blockchain in China remains positive.

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