JPMorgan calls Bitcoin "fraud" only for use by criminals and North Koreans

An employee uses a smartphone during a demonstration of purchasing bitcoin from a bitcoin automated teller machine in Tokyo Japan

Bitcoin Dives on Dimon's Fraud Warning

"After carefully considering the announcement published by Chinese regulators on 09/04, BTCChina Exchange will stop all trading on 09/30".

Bitcoin is now down almost 30% from its peak at above $5,000 on September 1.

Two business newspapers reported yesterday that Chinese bitcoin exchanges were asked verbally by regulators in Shanghai, the country's financial centre to close. In fact, BTC China, the largest exchange in China, said it would stop facilitating trades by the end of the month.

Jerome Rousselot of blockchain micro-finance startup Jita Ltd. explained that this is the second time China is acting on digital currencies.

Interestingly, the cryptocurrency market has actually picked up following the news.

Both exchanges said the decision to cease trading was triggered by an announcement by Chinese authorities last week banning initial coin offerings (ICOs), in which companies issue "digital" tokens similar to shares in exchange for bitcoin or other cryptocurrencies.

BTCChina's ban, as well as warnings such as the one issued by NIFA, has driven fears that there will be a continued crackdown on Bitcoin and other cryptocurrencies, according to Fortune.

The Internet finance association was set up by China's central bank, and according to Reuters, it "urged members to abide by Chinese laws and not deal in cryptocurrencies".

If OKCoin and Huobi do really suspend trading on their high-volume exchanges, they will join the BTCC, which announced the suspension of its exchange scheduled at September 30.

However, not everyone feels that this is the end for Bitcoin exchanges in China.

Bitcoin's value tumbled 15 percent on Thursday to about US$3,300.

China accounts for about 90 percent of all bitcoin trading on exchanges, and demand for the virtual currency was on the rise.

The Chinese central bank has not responded to questions about the currency's future there.

In the latest developments, after Dimon's statement, Bitcoin price has suffered losses up to 11%.

Arthur Levitt, former commissioner of the U.S. Securities and Exchange Commission, said that just because the cryptocurrency markets are wildly speculative at the moment doesn't mean cryptocurrencies are going away.

Latest News