According to the the Internet financial Risk Rectification Work Group of Shanghai, currently 90% of the ICO projects have completed refunding procedure. Executives of 17 related exchanges are asked to stay in Shanghai to assist refunding work. Previously., the authority has asked related exchanges to issue notice and shut down trading before 30 September. Some exchanges, like BTC38, are operating until the end of October. The “ICO Ban” is devastating to Bitcoin ecosystem in China as exchanges are one of the most important link and provides much needed funding to all elements in the circle.

The “ICO Ban” is straightforward and leaves no exemptions. Bitcoiners are worried that it might render the existence of bitcoin mining farm illegal in China, which will undermine the very bedrock of the network security as 70% of the hashrate are believed to be located in China. So far there is no physical evidence that bitcoin mining would be banned in China.

Update from local media show that there are 17  exchanges based in Shanghai and executives are asked to not to leave the border of China. The 17 exchanges are:

“BTCChina, Binance, Szzc, Lhang, Etcwin,Bitequang, 51szzc, Hanbiwang,Btcb, 19800, FreeWillex,ICOAGE,91ICO,ICOrace,ICOfox,ICORaise,ICO17.”

Aside from BTCC, other exchanges mentioned above are newly emerged and somehow connected to ICO either as a ICO platform and as an exchange. Most of the exchanges have announced trading closure except Binance, which has been listing new assets on its exchange continuously after it banned visitors with Chinese IP address. There are voices in the community that the greed of ICO operators has ruined the industry and the ecosystem.  Bitcoin exchange could have survived the regulatory ban if it were not for the scammy ICOs  in the market.
Since the “ICO Ban” issued by the authority on 4 September, the “Big Three” Bitcoin exchanges announced CNY trading suspension by 15 September, the deadline given by authority. Every move of the exchanges are closely watched, OKCoin posted a weibo about the company’s new office  to clarify rumors that the exchange has fled.

OKCoin moved to new office on 22 Sep (source:weibo)

Actually, domestic exchanges are exploring living space outside mainland China. A post on 8btc forum points to some exchanges that are allegedly the descendants of some Chinese exchanges. However, such effort may be futile as established exchanges abroad provide better user experience and more liquidity.