Do Not Mention Devaluation, China Tells Its Bitcoin Exchanges

China has ordered the most liquid and popular global bitcoin exchanges based in the country to refrain from any “offline promotions,” to not engage in any “fake trading,” to enact “mandatory strong KYC,” and, in a clear sign of nervousness about the country’s currency, to not mention devaluation, according to a translation.

China shocked world markets on August 2015 when it devalued its currency, the yuan, by 2%, creating turmoil around the globe and sending its stock market down crashing. It further began money printing in early 2016, sending the currency lower and lower, which in turn incentivized its businesses and citizens to store their wealth elsewhere, forcing the authorities to intervene to slow down or halt the decline.

The most spectacular intervention came three days ago when Yuan’s overnight borrowing rate increased by 100%, sending bears for cover, crashing bitcoin down by $300 in minutes and giving yuan one of its biggest one day gain in years, strengthening the currency by 1%.

However, it appears the market has doubled down. Any gains were almost erased

Read more ... source: CryptoCoinsNews

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