On Friday, China’s two largest cryptocurrency exchanges suspended new user registration and deposits. Trading on both Huobi and OKCoin will end by October 31, 2017. In Chinese markets, bitcoin now trades at a nearly $500 discount relative to the global market.
Early Friday morning, several reports circulated claiming that Chinese authorities have suspended trading on virtual currency exchanges. Some even alleged that the halt was actually a complete closure of Chinese cryptocurrency exchanges.
Queries of the Consumer Financial Protection Bureau’s Consumer Complaint Database return no results related to token offerings (ICOs) for financial products. However, grievances regarding virtual currency exchanges, specifically Coinbase, are somewhat common.
In light of the SEC’s recent guidance regarding The DAO, ShapeShift will review the tokens listed on its platform. ShapeShift may delist tokens that could be classified as securities under the Howey Test.