China’s Regulatory Crackdown Forces – More Bitcoin Exchange ClosuresEssay Preview: China’s Regulatory Crackdown Forces – More Bitcoin Exchange ClosuresReport this essayBB501961 FAN XIAN BECO310 REPORTChina’s Regulatory Crackdown Forces–More Bitcoin Exchange Closures Beijing has ordered all affected bitcoin exchanges to post a notice of their closure. All exchanges that deal with crypto currencies in China must shut down operations to stay compliant with the country’s regulators. On september.14.the exchange BTCC which is one of the largest bitcoins trading platforms  in China announced it was closing the Chinese bitcoin trading business on September 30,but the other businesses of BTCC are unaffected. The other bitcoins exchange platform Viabtc is also shutting down operations of bitcoin trading in mainland China on the same day. The price of bitcoin has decreased 38 percent since the two Chinese exchanges made announcements because many customers urged to withdraw their funds quickly. On September 13, Chinese Finance Association of Internet has published the article “On the hint of preventing the risk of so-called “virtual currency” such as bitcoin”.The article is pointed out that the number of stakeholders in the Bitcoin trading platform is widening and the speculative atmosphere is strong. It is a tool for criminal activities such as money laundering, drug trafficking, smuggling and illegal fund-raising. In fact, as early as 2013, the Chinese central bank to specify that the bitcoin as “net virtual goods”, not the legal currency in China.
The virtual currency such as Bitcoin has many characteristics such as  the anonymity of the virtual currency, decentralized, can not be tampered with, cannot be traceable and so on. Those traits increase the monetary policy monitoring difficulty, making the virtual currency is easy to become a cross-border money laundering tools. Virtual currency is increasingly becoming an accomplice of criminal activities. In China, there are 98 percent of the virtual currency transactions is through the currency trading platform but there are many risks to these trading platforms. One situation is the carrying money absconded. There is also a situation where cybersecurity and risk prevention is inadequate because of its open source therefore making the virtual currency under the risk of theft by hackers. On the other hand, the closure of bitcoin trading in China which may make an increase in the investment in China’s stock market.
As described in reference 2:1, all merchants only accept digital currencies as payment. A digital currency, however, can be exchanged in any form and the exchange is irreversible. Each transaction is recorded in the “Bitcoin database.” Therefore, the exchange transaction for all bitcoin is a “coin transfer.” In order for exchanges to establish a virtual currency, the verification method, which is the digital wallet, must also be used, as shown in reference 2:1; where the digital wallet verifies the blockchain location of all all its own bitcoins and the digital currency.
Since bitcoin is not a physical unit of fiat currency in any developed country, only a fraction of its transaction can be recorded and that fraction is used on exchanges.
The government of China can confirm the identity of the buyer by using different cryptographic technologies, such as XMR, to record Bitcoin transactions. In that manner the digital wallet can be made and stored in a permanent, non-interactive server at a government-controlled bank to provide liquidity to any exchanges running digital currency. The exchange can take the digital wallet account and use it and the funds to verify the identity of the buyer and the Bitcoin amount to be invested. Only when the wallet account is transferred with a bitcoin can the owner be verified by a public-key cryptography solution to record and exchange the bitcoins. As Bitcoin is the “private money” generated by all electronic users with no special technical skills, such as computers or software developers. Bitcoin transactions are digitally authenticated and only the owner of the virtual currency can be recorded and transmitted in a public and decentralized way.
Although the total value of every bitcoin is about 1 billion Chinese yuan (“CNY”), it is less than 4 Billion CNY since there are only one million bitcoins and the amount of value of the transactions which use the new digital money has hardly increased. Thus, it has not increased. Bitcoin transactions will still be verified at a central point by a third party, or even the digital currency issuer. The Bitcoin network needs to make more efforts to ensure authenticity in its payments network. In any economy, there must be a central clearing house to track transactions and verify the authenticity of all bitcoins so that the value of the real value cannot be known to the outside world in any commercial way. At the global level, it is necessary to ensure that all payment methods are fully valid, or at least reliable from point of view and that the use of such payment methods will only increase.
Bitcoin is not unique.
When people use bitcoin, they are not telling you why they are using it and they are simply asking if it is possible to transact electronically using bitcoins, which