Bitcoin value drops on news of Chinese exchange shutdown
Between Thursday and Friday last week, Bitcoin value dropped 7.3 percent following reports that Chinese regulators were forcing the shutdown of that nation's virtual currency exchanges. By noon Friday, the currency had rallied somewhat, making up about 3 percent of its losses.
Some China-based exchanges, including Huobi and Okcoin, have contradicted the reports. Both exchanges said in a Bloomberg Technology report that they have received no such orders from the government, resulting in confusion about what Chinese regulators actually intend.
However, there is no disputing the fact that China completely banned initial coin offerings last week, a move that itself put a significant dent in bitcoin value, according to Bloomberg Technology.
The Chinese government has vowed to severely punish any company that attempts to offer an ICO in the future, and has instructed companies that already have held sales to refund money to participants.