China’s first cryptocurrency exchange, BTCChina, will no longer be active in the crypto industry, according to various reports. The company has also been a stakeholder of ZG.com since 2019, but is said to have already sold its share.
The Chinese news agency The 21st Century Business Herald released the news and said that the share has been acquired by an undisclosed company from Dubai. The report states that ZG.com is an independent cryptocurrency exchange. They would be registered in the United States and Singapore, among others. BTCChina invested in January 2019 and is now stopping.
The decision is a result of the strict policy in China. For example, mining is banned on a large scale. To this end, the Chinese company has decided to exit the crypto industry completely, according to the South China Morning Post.
Huang Xiaoyu and Yang Linke are the founders of BTCChina, which was founded in 2011. However, in October 2017, the company already stopped trading crypto, after a ban by the Chinese government. BTCChina then sold the exchange activities to an investment fund from Hong Kong. The exchange then (largely) continued under the name BTCC.
Crypto chaos in China
For months, the Chinese government has been busy cracking down on crypto. For example, bitcoin mining has been banned on a large scale in many provinces, including Sichuan and Yunnan.
In addition, major Chinese banks such as the Agricultural Bank of China have already confirmed that the Chinese government will also ban crypto-related transactions in bank accounts in China.
BTCC itself indicated last week that it has not yet been affected by all the strict rules:
BTCC is not yet affected because BTCC does not offer trading in cryptocurrencies, but derivatives of cryptocurrencies.