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(Natural News) Bitcoin cultists who believed they had discovered a perpetual money generation shortcut that bypassed the laws of economic reality are suddenly shocked to discover that governments can regulate Bitcoin out of existence. In fact, it looks like China is beginning to accomplish exactly that.
Shanghai-based bitcoin exchange BTCC has announced it will be closing down its China-facing trading operations effective September 30.
In statements on Twitter and on China-language social media, the oldest cryptocurrency exchange platform in the world’s largest market said it would immediately stop onboarding new users, but that its mining pools and international exchange would continue to operate normally.
At press time, the statement is the latest to seemingly confirm China may be on the verge of a broader effort to curb domestic cryptocurrency activity, following yet another report by a local financial news source indicating that regulators are preparing a formal ban on domestic bitcoin exchanges.
Bitcoin prices, of course, plunged yet again, now dropping 25% from its recent high. As MarketWatch reports, $23 billion in Bitcoin valuation just evaporated in mere hours.
From Bitcoincharts.com:
Bitcoin myths are unraveling by the day
One of the most persistent myths about Bitcoinwas that it couldn’t be regulated by governments or central banks. Yet this news demonstrates without question that governments can and do regulate Bitcoin exchanges, and they can outlaw them, driving Bitcoin out of the realm of everyday citizens and into the fringe underground where it has much less appeal. So much for the idea that Bitcoin bypasses all government control, eh?
Make no mistake: Governments and central banks are gunning for Bitcoin. They will actively work to discredit it and destroy it.
