China is closing down all cryptocurrency exchanges

The last couple of days there have been rumours that China was going to close down all cryptocurrency exchanges. The rumours where called unconfirmed and some considered it to be market manipulation. From different sources we now get confirmation that the rumours are real.

One of those sources is one of the main Chinese crypto exchanges itself. On the site of BTCC the customers can read the following information:

1. Why did you decide to shut down BTCChina exchanges?
   We made the decision to close our exchange after carefully considering the "Seven Regulatory Bodies' Announcement on Preventing Risks Associated With Token Fundraising," (http://www.csrc.gov.cn/pub/newsite/zjhxwfb/xwdd/201709/t20170904_323047.html), which was published on September 4th.
2. Is BTCChina suspending its exchange business or shutting it down?
   BTCChina will completely shut down its exchange businesses on September 30th. This includes BTC/CNY, LTC/CNY, and BTC/LTC trading on BTCChina Exchange, and ETH/CNY and BCC/CNY trading on Blockchain+.
3. Does BTCChina have enough assets for all customers to withdraw their funds?
   BTCChina Exchange and BTCChina Blockchain+ have enough funds to accommodate all customer withdrawals, including CNY, BTC, LTC, BCC, and ETH.
4. Can I withdraw my funds now? Are my funds safe on your exchange?
   We encourage customers to withdraw their funds as quickly as possible. Customers can withdraw their funds whenever they want. Customers' funds are safe on our exchange.
5. How long do withdrawals take?
   All withdrawals (including CNY, BTC, LTC, and ETH) are processed within 24 hours.
6. Can I withdraw my funds after September 30?
   Customers will still be able to withdraw their funds after September 30. We will let customers know if there are any changes.
7. When can I withdraw my BCC?
   BTCChina's Blockchain+ platform will open up BCC withdrawals before Sunday, September 24th.
8. What should I do with my funds?
   You can withdraw your digital assets to other exchanges or wallets, and withdraw your CNY to any bank in China.

Another source is an attendant of a bitcoin conference in China. Simon Dixon of the Bank of the Future is currently in Shanghai to speak at the Shanghai Forex Expo. In an interview he gave earlier today he told that the Chinese exchanges were indeed being closed down. Speakers at the conference however were not allowed to talk about this.

Bitcoin itself is not declared illegal by the Chinese. It is just the trading of cryptocurrencies that is not allowed anymore. For the time being the Chinese miners will continue there mining. It will be interesting to see how this new Chinese policy will effect the exchange rates.