China's Bitcoin transactions freeze after free trading era ends

Today, China's Bitcoin transactions officially bid farewell to the free era, and China's Bitcoin transaction volume has dropped sharply.

The current price of Bitcoin China is RMB 6,269.99, down about 0.2%.

In terms of trading volume, as of 13:00, the trading volume of Bitcoin Exchange plummeted by 89% in one hour, from 10,062 bitcoins in the same period yesterday to 1,026. The trading volume of Huobi and Bitcoin China is also not optimistic, with a sharp drop of 92% and 82% respectively. According to previous statistics from the media, the total trading volume of the three major Bitcoin exchanges in China accounts for more than 98% of the global trading volume.

On the evening of the 22nd, China's three major bitcoin trading platforms announced on their official websites that in order to further curb speculation and prevent sharp price fluctuations, they will charge a service fee for bitcoin transactions starting at 12:00 noon on the 24th, with a rate of 0.2% of the transaction amount. The above platforms did not charge transaction fees before.

Wall Street Journal previously mentioned that some analysts believe that one of the reasons why China has dominated Bitcoin trading volume in recent years is that there are no transaction fees, which has boosted the demand for Bitcoin transactions in China.

Earlier this month, media reported that high-frequency trading is "taking over" the Bitcoin market due to zero transaction costs, with some professionals able to drive 80% of the market's transactions. For professionals, high-frequency trading strategies have also become the norm on Bitcoin platforms.

However, when Bitcoin became popular and its price soared to near all-time highs, it attracted the attention of regulators.

Recently, Chinese regulators have stepped up their supervision of Bitcoin. Earlier this month, the People's Bank of China entered the three major Bitcoin trading platforms to conduct investigations and demanded rectification. Subsequently, the three major Bitcoin exchanges announced that they would stop leverage (financing and lending) business. Bitcoin prices also plunged sharply.