In wake of the recently announced crackdown on illegal cryptocurrency trading providers in China, at least five cryptocurrency exchanges have announced a halt of trading or shutting down of their services, Cointelegraph reports on November 30th.
In the past week alone, Bitsoda and Akdex terminate services on November 23rd and 24th respectively, both citing government policy. Following the two, a further two Chinese exchanges, Idax and Btuex, announced they will stop providing services and upon restart will limit the services to non-chinese citizens only while Biss stated they are actively cooperating with the authorities and looking to relaunch services as soon as possible.
It would appear that the Chinese authorities will no longer turn a blind eye to cryptocurrency exchanges. As the trading of cryptocurrencies in mainland China has been banned for quite some time, these exchanges undertook a huge risk, counting on being able to fly under the authorities radar. While they might have managed so far, it was obviously because of the government's lack on interest to crack down on those trying to circumvent the regulation. In the coming months we're likely to see a major purge of such exchanges with Chinese citizens wanting to buy cryptocurrencies being forced out to seek out alternatives. In doing so, we could see exchanges that relocated abroad profit as the customers turn to known names.