The Butterfly Effect of Chinese Bitcoin Regulations

[jamie.redman1]

Over the past few weeks, China has implemented regulations across all bitcoin exchange operations within the country. This, in turn, has caused a significant drop in trading volumes within the region. Some people speculate that Chinese bitcoin traders are now going abroad finding friendlier overseas entrances to bitcoin exchanges.

“You should view the impact of this regulation storm from both the upstream and downstream directions of the business,” explains Li Qian. “For the those at the upstream direction, i.e. the bitcoin miners, they are not affected. Chinese miners continue to mine as usual. Our electricity and labor cost are always cheap. The most affected is the trading aspect of Bitcoin (exchanges). Currently, the impact of the Chinese market in the world has declined a lot, especially after charging fees, our turnover rate is now severely limited.”

Read More Here: https://news.bitcoin.com/butterfly-effe ... gulations/