Bitcoin Forum

Today's people's daily released an article calling for regulation of bitcoin or digitial currency, which was soon reposted by major medias, including this one.
https://pbs.twimg.com/media/CRKs9AvUEAAdKeD.png

On 15th Oct, 1st Global Blcokchain Summit will be held in Shanghai. Detailed agenda here (http://8btc.com/thread-23038-1-1.html).
http://8btc.com/data/attachment/forum/201509/21/114152p744qzq7j6xjoxwn.jpg


Looks like more regulations and more players are on the way.

This is will be a good news and will make a price jump.

China is dominate for anything on this world. I see bitcoin regulation in China is in yellow color(restricted).

Yeah, everything is restricted by default in China, we unban something. While things always be free in your world.

Most of the major players were invited and I wonder whether Bitcoin or the Blockchain will be the dominant discussion point on their agenda. Can someone translate the agenda points for us?

If they talk about the Blockchain, it might be good for China. The global scene are turning towards Blockchain based technology and if they follow that trend, it might be more positive.

China are currently heavily invested into Bitcoin mining, and it will be nice to know that they will be growing a industry around that. It's good for exports and create a lot of job opportunities.  

They will first need to find a way to enforce the taxes.. It will be very difficult in the early days to keep track of bitcoin and wether taxes are being paid.

I don't see the early countries benefitting more in this way. It will probably be those sitting on the sidelines, first creating a method to extract taxes, that will profit.

I suspect the reason they are looking at regulating bitcoin is a part of their capital control restricting the outflow of money from the country. Right now, Bitcoin is actually he best way to do that right now.

So are they still going to treat bitcoin like postage stamps?

I think that if bitcoin was regulated in China, it would be a good thing. China is one of the biggest countries and contributes to a lot of the economy with its exports. Bitcoin would most likely go up as more people would want it, but there would still only be a certain amount of it and that amount is not changing.  ;D

i dunno if they would still invest big in bitcoin, even if regulated, when they are contorlling and mining a shitload of coins everyday

those that are already interested should be in, in any case even now, it's not like it is banned, you can trade there without problem

Random billionaire to take an interest in Bitcoin would change things.

There are plenty of them in China that's for sure.

if 1 billionaire is going to actively invest in bitcoin then others will follow. this everything can bring bitcoin into a new bubble phase. but this is purely speculating.

If bitcoin can be used for buying/selling, importing/exporting goods, and gradually replace US dollar, then it is good.

It is hard to regulate Bitcoin anywhere. They can impose laws on exchanges but they cannot stop people from trading Bitcoin. Even if the exchange closes, big miners can still trade with others overseas and still make a profit. Governments cannot shut down mining farms as they are relatively hard to find.

If it gets "regulated", it will get closer to "legit" and more people will be confident to put their money in.
If the regulation is not good enough, the current users will not leave the bitcoin world, there are a lot of means to still use bitcoin. (Banning bitcoin never worked well.)

So overall it's a good news imho.

Good point. Another news is the 7 trillion Chinese QE.

Whatever any country in this world decides, China as well, can have only short term consequences on the Bitcoin price. Long-term I don't think that can be done any harm, unless the whole world gets together and bans Bitcoin collectively, and this will never happen.

So I am not worried much. Everybody will govern Bitcoin as they feel they supposed to. Even China, they restricted bank account connections to the Crypto exchanges in April, Chinese have still found the way to put money in and out of the exchanges.

I still see chinese users still using bitcoin even if it was classified as illegal.

Bitcoin is not illegal in China. Only bank are not allowed to transact it directly. You can still buy and sell bitcoin in exchanges.

If bitcoin will be regulated in some country (whosoever it will be) this would be a great news for the community of bitcoiners. But if regulated in China this would be the BIG news for everyone which believe in bitcoin. The importance of this country in the world, its increasing power and development make this news really great. After USA maybe China is the most important country which had (if will be so) regulated it.

To not forget that China has the biggest figures about bitcoin. The most number of miners are from China and according to Coindesk, China has a strong competitive advantage in bitcoin mining; it currently accounts for at least 50% of the global bitcoin network mining power and about 3.6 million bitcoin wallets have been created with bitcoin wallet provider Blockchain, while Coinbase has over 2.3 million users.

Let's hope that this news will be followed from other steps and the status of bitcoin in China go from "restricted" in "regulated" and "legal".

While I frown upon the idea of regulation, I think if that means bringing bitcoin popularity and adoption towards the next level, then I'll agree to it. I hope by having some form of control, this will instill trust and confidence of those people having doubts towards bitcoin. Sometimes you just have to sacrifice something and that's a fact.

I would see it as another positive thing happening to Bitcoin.If Bitcoin will be regulated in China this means more people will involve with more freedom in Bitcoin.This will take it one more step forward towards bright future.

and other country will foollow that regulation?

Something that could be terrifying would be if they agree to start an "official" state-controled cryptocurrency. With all the money that this group of people have, they could kill Bitcoin and even Ethereum !

But if they fully legalize Bitcoin, price will surely increase :).

Can you please explain how exactly any state-controled cryptocurrency may put other cryptocurrencies in danger? Let's say Russia will start producing its own dollars, will this put U.S. dollar in danger?


Bitcoin doesn't need no "full legalization". It just needs less restrictions and regulations.

Isn't it already regulated?  ::)  They block many bitcoin related websites.

China long time ago said that thay will follow USA regulation.If btc will be regulated in China than big chinise bussineses will start to accept btc.Of course price will jump  and will remain more or less stable

That's right.Bitcoin has never been deemed illegal in China. Or yet.

Well they did, and afterwards they took back what they said. China is a major parr of the bitcoin economy, and if in case they completely ban bitcoin-related activities, we‘ll probably see hard times coming.

i think those chinese people who were interested in bitcoin and wanted to invest in it, have already done it and the rest have invested in mining and are mining currently. if bitcoin get regulated it would only help government keep an eye out on them.
but also it can help more businessmen to start using bitcoin with more confidence and this can help bitcoin grow IMO.

The official status of bitcoin in China is "restricted". If you want more explanations see and read in this link here: https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country (https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country)

+1 for Europe and the U.S. Not hating on anyone

china regulating will open the door to huge amounts of new money flowing into bitcoin without a doubt. Bring it on I say, bring it on!

Regulation can make it acceptable to some main stream applications. Many institutions can only invest in regulated exchanges.

Regulations are good in the sense that it means the coin is getting enough attention to be considered by governments. But it tends to has its counterpart (trying to control it).

And China has a history on controlling.

Bitcoin will never get regulated in China. The whole Chinese "empire" is built upon control of the state, with Bitcoin they would lose a lot of money (as in controlled by the state money) by giving the power of freedom that Bitcoin is to their citizens, so they will keep it, if not banned, at least somewhat inside a grey area, unless the citizens defeat the goverment regime.

...

With China controlling over 50% of current hashing power, I wonder if there are LARGE Bitcoin holders there.

The uber-rich of China could buy up a lot of Chinese-mined BTC and fairly soon could have a lot of easy to transfer funds (to buy real assets in the West for example).

Anybody know of there are heavy hitters among BTC owners who are Chinese?

Disagree. The Chinese people and, above all, their Government are between the most open minds people in the world. Not occasionally China is now one of the most powerful countries in the world and compete only with USA in this direction. 20-30 years ago China was only a poor country nominated as country of third world (between the less importants of the world). Not occasionally China has arrived this status being a country without fully democracy and politically with only one political party. This party hold with violence its status and its position as the only party in this country but this doesn't make it less intelligent in leading this country.

They will understand (or better already know this) that bitcoin is important in the world of technology and could be even in economy and they will regulate it. They see their interest but and mostly the interest of they country and its people. I think that the regulation and legalization (that in fact are the same thing) of bitcoin in China will become reality in the most opportune moment for the country and its people. Chinese are very opportunists and they story testify this. This well known opportunism of them made true the actual status of China. This opportunism will make true, in the right moment for those, even the full regulation of bitcoin.

There is no known large holder there.

because they sell continuosly, but amond the miner there should be someone with plenty of btc, one that run those big farms, even if he make only 10 btc per day, in one year only he have already a good stash

yes. I dont understand why people fear of Government regulations. They will regulate it to be Bitcoin friendly if they will not, Bitcoin economy will leave that country and move to other one. Why would any country want that?

What kind of regulations?

There are some that don't allow exchange of BTC for goods and limit how many BTC can be transferred to BTC exchanges, what more now?

If they do so, Chinese state could then make illegal any other cryptocurrency. Every Chinese exchange would closed and Bitcoin volume would fall, then the price would follow him. A lot of mines would also be closed. This could be benefical to us since difficulty would drop a lot. We would have more Bitcoins but worth cheaper, just like at the beginning. This scenario is a bit extreme, but this could happen in a less-intense way.

I've seen interviews with various Chinese mine operators. A few are keeping significant amounts and considering the quantities they mine that must add up to plenty. I guess they're sensible enough to not draw attention to themselves unlike some of the Western big shots.

What does it mean "less restrictions and regulations" and where is the difference between the "full legalization" and the "less restrictions and regulations"?
I'm curious to know these detailed concepts and understand the difference between those. Because to me, to tell the truth, seems without meanings all this game with words.

To not tell here that the regulation on itself can be very different from country to country. So can be with "more restrictions" or "less restrictions" being in the same time "full regulation" and "full legalization".

I think that bitcoin regulation in china would be a good step into bitcoin adoption in china. With a safe regulation people will take bitcoin more serious.

I haven't heard of any Chinese that controls a huge amount of BTC.

Your theory could make sense in a way. Miners in China would be quite money minded and sell their BTC immediately after mining. However, the costs of banking fees could be too high and they would find someone willing to buy it at a good rate and they don't have to worry about the fees. Some miners would be keeping a portion of BTC after factoring the labor costs and electrical costs though.

It will be a good news.
We all know that China is a big country.
Most chinese people will understand what bitcoin is.

Any Bitcoin regulation in China will afect Bitcoin. There are a lot of people in china, if govern permits and regulates uses of Bitcoin a lot of people will know about bitcoin and price could increse. In the other hand, if china government regulates against bitcoin, it could make that chinese bitcoin users sell it and prices could decrease.

i just worry about that regulation will follow by other country,and make some problem about legalizm.

Worst case scenario... They can re-define it as a commodity and ban it from being used as a currency. We have been seeing this in other countries too and it's not good. The

regulation will only happen if it is used to bypass laws or to avoid taxes. The governments wants a piece of the action {taxes} and they want to be in control. If you threaten that,

you will see lots of regulation. Bitcoin by nature have opportunities for people to do both... Let's just hope the advantages outweigh the disadvantages for them.  ::)

Bitcoin exchangers are already banned in China and the banks are not allowed to accept firms that are related with Bitcoin.

So how do the exchanges work in China. There are still many trading there. The volume is quite large. More than 50% of world's total volume.

because what he have said, it's not true, there were some heavy restriction in the past, because the government was thinking that there were a possibili for the cny to suffer a devaluation

but then it was permitted, because presumably, they could earn profit from those eexchange

Please show me the official links where it's saying that the Chinesse banks and exchangers can deal with Bitcoin.

Banking institutions and employees are banned from engaging in bitcoin business through banking, as well as servicing or doing business with the bitcoin industry

So, individuals can trade bitcoin but not the companies.

Yes, there illegal tradings. What's so hard to understand that most of the Chinese exchangers are doing illegal exchanges :)

They block google, youtube, facebook, twitter and so many ...

I still fail to see how you "regulate Bitcoin" so to speak. How in hell will you keep track of all of it? And i don't see how it would be less difficult after the early days. The more people using it, the more of a nightmare it will be, but the main thing is anonymity being increased overtime as the software gets better.

Most people require fiat interaction somewhere along the way and that's where they can stick all the regulation they like in. If fiat gateways were strangled it could still continue but would lose a humongous amount of utility. Not many folks are all crypto.

Banks were barred from dealing with Bitcoin transactions, BTCChina still operates as they have realised that they are still able to trade but banks were not allowed to be or setup a Bitcoin business[1].

[1] http://www.coindesk.com/btc-china-accepting-bank-deposits/

I do not understand how it's possible to continue their operations for BTCChina without the help of bank accounts to handle fiat against the bitcoins.
China has more hash power as per mining percentage data. It will make china to posses more bitcoins. So, if bitcoin get regulated in china, that would boost to value appreciation over all.

^^^ This.

If regulators were to shut off the fiat gateways (converting BTC to/from cash), that would hit Bitcoin very hard.  At least in the BTC markets for real (physical) goods.  OK, for music files, etc., BTC would appear to work fine.

Even the gold dealers who take BTC as payment convert their crypto to cash.  Would these dealers sell gold for BTC without the easy option to turn it into cash? 

Not likely.

It does. In acquiring bitcoins through exchanges under a jurisdiction where bitcoin is regulated, users are affected the most (and of course, it hurts bitcoin too). It forces them to give out their credentials for tracking and taxation by the government. In a mildly-regulated scenario, it may be good, but in places such as NY? It isn't, and it affects bitcoin and its users there.

the blockchain was implemented as a way to publicly verify who spent what, and when. And to go a little further than this, there are dozens of people that are working on ways to prevent this tracking of transactions which, in the future, will also make it impossible to tax people based on their bitcoin holdings.

i'm not sure what the effect of bitcoin regulation in china,and until now i'm also dont know,is bitcoin has been regulated in china? if it was done,i think chine succesfull to make bitcoin price raise up,since this thread posted,bitcoin price have been raise so well.

To be honest, I don't think Satoshi actually celebrates his birthday. He probably just celebrates every time Bitcoin goes up.