Ethereum plunging after reports China could ban cryptocurrency trading

Ethereum is plunging.

Ethereum is plunging on Thursday afternoon, trading down over 17%
to $228 per token, following reports that
Chinese regulators are taking steps to shut down the country’s
bitcoin exchanges and possibly ban all trading of digital

BTC China, the second largest Chinese bitcoin
exchange, tweeted
that it would stop trading of bitcoin on September

“After carefully considering the announcement published by
Chinese regulators on Sept. 4, BTC China Exchange will stop all
trading on Sept. 30,” the exchange said.

On September 4, Beijing made
initial coin offerings, a red-hot cryptocurrency-based
fundraising method, illegal. ICOs often run on ethereum’s
blockchain to create new cryptocurrencies. Beijing also
suggested it would ban all cryptocurrency

In an ICO, a company issues a new digital currency
that can either be spent within its ecosystem, a bit like
Disneyland dollars, or used to power part of the business. They
have help some companies raise millions of dollars in a matter of

Ethereum has been sliding since the announcement of the
Chinese ICO ban. 

According to
, China plans to shut the country’s
cryptocurrency exchanges by the end of the month per
reporting from Yicai, a Chinese news outlet. The website

Crypto Coins News
 on Thursday
morning reported a local newsletter that said banning
exchanges was “certain.”

In February,
China blocked traders from withdrawing their bitcoin
They were eventually allowed to resume withdrawals in

The cryptocurrency market has come under pressure as of late. Its
market cap has slumped nearly $60 billion from its record high at
the beginning of September to $110 billion on Thursday.

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