© Reuters. Bitcoin is on track for its biggest daily loss in more than 6 months

Investing.com – Bitcoin is on track for its biggest one-day decline in more than 6-months, as investors flee cryptocurrencies after Chinese bitcoin exchange BTCChina said on Thursday it would cease trading from Sept. 30

On the U.S.-based Bitfinex exchange, fell to $3350, down $526.8 or 13.68%. Bitcoin is more than 30% below its recent peak of $4,969. At current prices Bitcoin has a market cap of $55 billion.

BTCChina, one of China's largest bitcoin trading platforms, announced that it would cease offering trading services on September 30, citing statements issued earlier this month by the People's Bank of China and other regulatory bodies in the country.

BTCChina will stop registration of new users from Thursday, it said on its official microblog.

"We will stop all trades on the digital trading platform starting Sept. 30," it said. Its co-founder, Bobby Lee, told Reuters the move would not affect trading on the BTCC international exchange, however.

The sharp sell-off in Bitcoin follows growing fears of blanket ban on bitcoin exchanges across China after a statement from The National Internet Finance Association of China (NIFA) Wednesday claimed that “financial and social risks [of bitcoin exchanges] cannot be ignored.”

The National Internet Finance Association of China, a self-regulatory agency, established by the People’s Bank of China, said that Bitcoin “is becoming a tool for money laundering” and warned that virtual currency trading platforms in China are not legally established.

Chinese regulators, however, are yet to confirmed any plan to shut down local exchanges but the statement from NIFA supports recent media reports warning that the decision had already been made.

“China’s central bank, working with other regulators, has drafted instructions banning Chinese platforms from providing virtual currency trading services”, the Wall Journal said Monday, citing people familiar with the matter.

The cryptocurrency exodus saw the prices of both Ethereum and Bitcoin Cash fall sharply.

fell $90.94, or 18.06%, to $412.63, while fell 16.29% to $230.12.