It looks like China is shutting down its blockchain economy

Enlarge (credit: Chris Ratcliffe/Bloomberg via Getty Images)

When the Chinese government announced a ban on initial coin offerings last week, it looked like an attempt to rein in the speculative excesses of the cryptocurrency economy. But now it seems like it might have been the start of something more ambitious: a coordinated campaign to shut down use of cryptocurrency in the Middle Kingdom.

The full extent of the Chinese crackdown isn't clear yet, in part because key decisions have only been communicated privately to Chinese Bitcoin exchanges. But a couple of Bitcoin exchanges have now announced that they are shutting down. And leaked documents suggest that the rest will be required to do so before the end of the month. Chinese users will be given a chance to withdraw their funds before the exchanges shut down.

"BTCChina encourages customers to withdraw their funds as quickly as possible," one of the exchanges wrote in a Friday tweet. "Customers can withdraw their funds whenever they want."