[FUD]Trading of LTC, ETC and other altcoins might be halted in China
Note: the authenticity of the source is still uncertain and the story will be updated constantly. More could be found on 8btc forum post.
Update: The China.com report has been removed and proven to be FUD.
Since the on-site inspection on Chinese bitcoin exchanges and suspension of bitcoin withdrawals, the regulatory policy or the “red lines” are being reiterated. However, according to a report by China.com today, trading of LTC, ETC and other altcoins might be suspended to control risk.
Screenshot of China.com report on halting LTC, ETC trade in China
It’s said that regulators may have contact exchanges for guidance counseling, topics of which would be around the following:
1. Suspend trading of LTC, ETC and other altcoins.
2. Freeze suspicious accounts.
3. Keep Bitcoin trading only.
The report has not citied any source to support the above claims. But it is not some cliche like we have heard so much before.
Although (Bitcoin) withdrawal is still being suspended, the recent pump and dump of altcoins has disturbed the order of financial markets and resulted in significant loss of small investors. With the speculation on altcoins heating up, scams and MLMs under the name of digital currency are often spotted.
At the end of the report, the guidance counseling was cited the “right time” to
Cool down digital currency market to prevent large-scale involvement in behaviors that violates laws and regulations.
The report was released around 9:30 am Beijing Time. Around 20 minutes later, LTC price on Huobi took a nose dive. 30 minutes later Huobi posted a weibo warning the risk of LTC price dump. Given the fact that Huobi is still under regulatory scrutiny, the intention of the warning might be underestimated.
Huobi’s reminder on LTC price dump
On the regulatory documents leaked yesterday, it’s specifically mentioned that:
“Article 10 Guidance of public opinion
Proper guidance of public opinions must be handled during the process of rectification. Opinions could be released through the official website, media interviews, expert interpretation and other means. Initiatives shall be taken to release regulatory signals and guide the community expectations.”
Maybe the halting of altcoin trade is not a groundless and wild guess.