China will close some bitcoin exchanges during September. China’s regulators have said exchanges need to close because they don’t have formal licenses.
There is a document circulating as well that explains what exchanges need to do. One exchange, BTCC, said it will shutting down and users ought to get their funds back by Sept. 30.
Some exchanges may not shut down, including Huobi and OKCoin. It is possible that China wants to radically decrease the number of exchanges so as to better control them.
Alternatively, government may actually take control of whatever exchanges are left. There is speculation that government does not want to shut down the sector entirely. The plan is not yet clear and the government is in no hurry to explain itself. Presumably it will do so in due time.