It is true that two of the largest cryptocurrency exchanges in China, OKCoin and Huobi, issued statements saying they would shutdown all trading between bitcoin and the Yuan. Beijings crackdown on bitcoin, Litecoin, Ethereum and other cryptocurrencies comes just over a week after it banned all forms of initial coin offerings (ICO), defining the activity as unauthorised fundraising a criminal offence in China. Chinas government is starting an all-out war against bitcoin and other digital currencies by banning fundraising through initial coin offerings and shutting down all mainland digital currency exchanges.
Fundraising schemes, whether through online peer-to-peer lending or pyramid sales, have often led to protests when they collapsed, making Beijing particularly wary of quickly spreading ICOs.