The choise of China’s bitcoin exchanges to freeze withdrawals is affecting the country’s over-the-counter markets. Some of China’s huge bitcoin exchanges suspended bitcoin withdrawals in response to new pressures from the People’s Bank of China, a move that was followed by similar policy updates from exchanges across the country.
However, whereas the price was not significantly compact, traders are reporting that they have had to shift ways, as they believe exchanges not act as a reliable worth indicator. Representatives from major over-the-counter companies indicated that they are currently mostly using the United States dollar price to determine the price of bitcoin.
Zhou Shouji, operator of over-the-counter trading firm FinTech Blockchain Company, for example, aforesaid his firm currently uses the United States dollar rate, as did over-the-counter trader Zhao Dong, who went up to now on described China’s exchanges as disabled.
Zhou Shouji said:
“Since you cannot withdraw, the worth is nonsense if you want to trade bitcoin. The price on Chinese exchanges is fake price currently.”
Traders further indicated that activity is progressively happening on peer-to-peer exchange platforms together with Bitcoinworld and Bitpie, a wallet and peer-to-peer service set up by startup Bither. Those interviewed indicated that they believe such services may become more widely used, particularly if further actions are declared by the central bank.
Kong Gao, overseas promoting manager at over-the-counter firm Richfund, described the prevailing sentiment in concert of continued uncertainty.
“I’m simply waiting to see what’s going to happen next. i do not suppose anyone will predict what the PBOC will impose next.”