China Will Heavily Crack Down on All Bitcoin Trades

Wall Street Journal reports that all Bitcoin trading will be banned in China.
Wall Street Journal reports that all Bitcoin trading will be banned in China.

It’s been a tumultuous couple of weeks in the Bitcoin community, as negative news spread throughout, driving prices lower. News of a China Exchange Ban, as well as negative rhetoric from the CEO of the world’s largest bank (JP Morgan Chase), knocked the legs out from under the Bitcoin price. 

However, a recent article in the Wall Street Journal indicates that the negative news still isn’t done. According to undisclosed sources, the Chinese government has officially decided to crack down on all Bitcoin and cryptocurrency trading, not just commercial exchanges. According to the WSJ:

“A broader clampdown will likely include blocking mainland access to websites of foreign Bitcoin exchanges such as Coinbase in the US and Bitfinex in Hong Kong, say people familiar with the matter.”

Sources?

Whether this crackdown is a further addition to the already rumored exchange closures remains to be seen. The WSJ article did not provide sources for the disclosure, saying only:

“Officials communicated the message to several industry executives at a closed-door meeting in Beijing on Friday, according to people who were at the meeting.” 

However, regardless of the Chinese government’s position, the Bitcoin community has already reacted, transferring much of the action to Japan, where regulations are more lax. The Bitcoin price has rebounded, even as the negative news continues.