Bitcoin Forum

Given all this FUD about banning bitcoin exchanges, aren't there already existing decentralized exchanges which china can use?
Those kinds of exchanges are literally un-bannable right?

There is LocalBitcoins which enables people to exchange in person, but large amounts are rare.

There are a couple of projects that are working on building decentralized exchange software.

Yes this is interesting post you wrote!
I know Waves decentralized exchange, but not so much popular.

I think next crytpo step will be opening big decentralized exchanges - this will improve situation in all crytpoworld!

Decentralized exchange is just the logical next step. Exchanges are currently the bottleneck for regulatory interference. Maybe some implementation of Interledger or Comit protocols using intermediary liquidity providers?

Chinese people are known to not trust their banks and usually make large purchases (cars, houses etc) with cash.
Closing bitcoin exchanges will probably transform the trade to a cash for bitcoin exchange which will sadly will be less secure for both parties.

The exchange is, but unfortunately not the persons who are doing the transactions.
Basically the risk is being transferred to the customers.

And if the Chinese government wants to trace your finances, they will do it pretty fast.
You will have to avoid bank transfers and then work with other 3rd party payment gateways.

So imagine all the trouble of selling and acquiring BTC by going first and buying something like wmz or whatever they use there, then transfer them to another person, wait for the escrow to clear the payments and hope you won't get scammed.
And the other way around, selling BTC for fiat when most payment processors offer refunds and chargebacks?

The Fud in the last days will make Wave holder Rich ;D

There is localbitcoins, OTC platform. Chinese traders used LBC when PBoC suspended exchanges in February and if we go by the recent stats it looks like the traders have again shifted to LBC, https://data.bitcoinity.org/markets/volume/30d/CNY/localbitcoins?r=day&t=b

Then there is the decentralized exchange, Bitsquare, https://bisq.network

Yeah, the governments can't shut down OTC/decentralized exchanges, but they can make it inaccessible. LBC can't be accessed behind the Chinese Firewall, traders use VPN to access it.

they have not banned bitcoin exchanges they are regulating them and that will take time and some investigation. and i remember reading that China has not banned bitcoin trading and it is allowing the OTC trading if anyone wants. they can also sign up on other foreign exchanges like the rest of us from other countries and trade in those exchanges.

there is also always localbitcoins available to p2p trade bitcoin too.

and yes there are a couple of decentralized exchanges but all i ever saw was low interest from people, having limited altcoins and not fiat market. maybe there are better ones but i am not aware of any.

The first reason that I see why the Chinese exchanges flourished is because of the low fees that they have there, enabling big businessmen to perform trading without a loss on fees. Also, PBoC wouldn't ban exchanges completely but rather impose some strict regulations. Beside, OTC trading and LBC hasn't been touched, and the bulk of the trade volume now is through LBC.

Are there any decentralized exchanges under development?