Bitcoin Forum

On March 13 the PBOC director of business management, Zhou Xuedong explained some of the reasons behind the recent regulatory inspections of bitcoin exchanges and emphasized how trading platforms are to proceed with their activities in the future.

"If it (trading platform/website) is called an exchange, it is not allowed unless a relevant department of our country permits it. Many people regard bitcoin online trading platforms as exchanges. These are actually two different concepts," explained Zhou Xuedong.

Read More Here: https://news.bitcoin.com/chinese-central-bank-director-bitcoin-trading-platforms-cannot-call-themselves-exchanges/   

exchange
ɪksˈtʃeɪndʒ,ɛksˈtʃeɪndʒ
noun
1.
an act of giving one thing and receiving another (especially of the same kind) in return.
2.
the changing of money to its equivalent in the currency of another country.

By the first definition and arguably by the second it is definitely an exchange.  This pedantic argument over a word is not going to change Bitcoin and I see this is as an attempt to discredit its legitimacy.

Set the bitcoin exchange will consist of many government agencies working together. Regulation should be implemented in a comprehensive manner - Many departments will play their part and join rules, bitcoin uses blockchain as the underlying technology. It was a relatively successful application. Several countries have recognized the legal status and may adopt it as a means of payment for the purchase of goods, which is to say, they recognize the value of bitcoin.

What a bunch of crap! The PBOC saw that some citizens are using Bitcoin to circumvent Capital controls and they will not allow anything to influence the manipulation of their reserve currency. < yuan > They are clamping down on Bitcoin exchanges, because they are the only soft targets they can reach. < Centralized services >

They did the same with Q Coin, because they too were centralized services. Bitcoin users will use the decentralized network to retain their financial freedom and there are not a lot of freedom in China at the moment. ^grrrrrrrr^

Here it can be seen that they are engaged in imposing their bureaucracy, but on the one hand they may be right.

Someone needs to protect people in case an exchange gets away with bitcoin from people.



It may be true, but we have to look the other way.

If an exchange runs away with all the people's money? They (PBOC) are using a very strong argument

So the exchanges can call them trading platform. If so, can they still trade?

I guess so, but how would people get Yuan in there to trade if not via an exchange?  Seems like the PBOC is merely playing games. :-)

True. They are exchanging one mean of payment to another. Bitcoin is not a stock, it's a payment system and an independent currency not backed by any government and Bitcoin trading platforms are in fact exchanges. If that semantics was the only reason for the audits those people at POBC are really wasting their time and making fools out of themselves in public.

Keep in mind that the original interview was in Chinese (http://www.yicai.com/news/5245112.html) and this article is reporting on the Chinese article, probably using a Google translation to English.

While Google translates 交易所 to "exchange" and 交易平台 to "trading platform", these terms have additional meanings that aren't not expressed in the words "exchange" and "trading platform".

I understand the PBOC desires which are good to protect citizens AND the government. I don’t think their actions will be as extreme as some may fear. What we must be cautious of is the typical private participants and owners of central banks and their attempts to influence or control bitcoin to their individual benefits.

all these regulations encourage more holding and less selling/trading, and that’s great for bitcoin as a store of value

Next step - Bitcoin cannot be called a currency (crypto or otherwise)  :P
The PBOC does not realize that 'exchange' is a generic term and they can't go about trying to change the definition now. A rose by any other name would smell just as sweet.  :)