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Title: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: alyssa85 on January 27, 2018, 11:33:36 PM https://cointelegraph.com/news/how-chinese-bitcoin-buyers-are-getting-around-government-ban
Quote Chinese citizens are still investing in Bitcoin and the cryptocurrency market despite the government’s heavy crackdown. In September 2017, Chinese cryptocurrency exchanges BTCC China, Huobi and OKCoin were ordered by the government to shut down their businesses. At one point, executives of the three cryptocurrency exchanges were prevented from leaving the country, due to a government investigation into local cryptocurrency exchanges. Three months later, in December of 2017, China’s three largest cryptocurrency exchanges relocated their businesses to Hong Kong. BTCC China, Huobi and OKCoin rebranded to BTCC, Huobi Pro and OKEx, respectively. They intended to address the rapidly growing demand from Hong Kong-based investors. Shortly after their move, the three trading platforms started to see daily volumes from Chinese investors grow exponentially. Somehow, Chinese investors were managing to circumvent Chinese trading restrictions by using Hong Kong-based exchanges. How is this possible? In Hong Kong, it is relatively easy for investors to set up businesses. With less than $1,000, businesses can be legally created, which allows the opening of business bank accounts at Hong Kong-based financial institutions. Beginning in December 2017, many Chinese investors moved their funds from their Chinese bank accounts to Hong Kong bank accounts and started to trade cryptocurrencies more actively, effectively bypassing China’s restrictions. But, unlike China, Hong Kong has a substantially lower supply to meet the growing demand. While China is home to major miners like Bitmain, Hong Kong does not produce much Bitcoin and other cryptocurrencies. As such, premiums in the Hong Kong cryptocurrency market increased, surpassing even that of the South Korean market. On January 18, when the global average price of Bitcoin was around $11,500, Bitcoin was being traded at above $13,000 on Huobi Pro. Krystal Hu, a Hong Kong-based finance journalist, noted that traders outside of China have also started to take advantage of the arbitrage opportunity presented by the Hong Kong market. For instance, on January 18, the price of Bitcoin on Coinbase was $11,800. Purchasing Bitcoin from Coinbase and selling it on any Hong Kong-based market would have generated $1,200 in profit. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: yoseph on January 27, 2018, 11:43:36 PM While the Chinese government didn’t really ban its citizens from using bitcoins, it only banned the exchanges to close down and they were wise to move to Hong Kong where the Chinese government had no jurisdiction there so now they are not breaking the law there at all and Chinese nationals are not breaking the law since Bitcoins is not illegal there.
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: Fileiro on January 28, 2018, 12:15:57 AM This definitely lends credence to my theory that Chinese market manipulation is still rife in crypto.
Everybody have been acting as if the Chinese suddenly took all of their bitcoins and vanished into thin air in September when exchanges were banned in mainland China, whereas the reality is they just moved their coins to exchanges located outside China. Expect to see more shenanigans like January 15 from the Chinese in the future.. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: WUUEX79 on January 28, 2018, 12:32:46 AM https://cointelegraph.com/news/how-chinese-bitcoin-buyers-are-getting-around-government-ban Quote Chinese citizens are still investing in Bitcoin and the cryptocurrency market despite the government’s heavy crackdown. Indeed it is a fact, because Chinese citizens are very enthusiastic and fluent in the use of cryptocurrency, and they are also very shrewd in the use of cryptocurrency, both with trading and investment. While the Chinese government didn’t really ban its citizens from using bitcoins, it only banned the exchanges to close down and they were wise to move to Hong Kong where the Chinese government had no jurisdiction there so now they are not breaking the law there at all and Chinese nationals are not breaking the law since Bitcoins is not illegal there. Yes this is the right news. The Chinese government simply closes exchange accounts only, because their activities are allegedly contained gambling elements, and this is strictly prohibited by their legislation there. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: alyssa85 on January 28, 2018, 12:39:33 AM This definitely lends credence to my theory that Chinese market manipulation is still rife in crypto. Everybody have been acting as if the Chinese suddenly took all of their bitcoins and vanished into thin air in September when exchanges were banned in mainland China, whereas the reality is they just moved their coins to exchanges located outside China. Expect to see more shenanigans like January 15 from the Chinese in the future.. Yes. It's my belief that they're still players and are acting through the Hong Kong and Korean exchanges (hence the huge volumes that suddenly appeared in the Korean exchanges after the China "ban") Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: squatz1 on January 28, 2018, 01:42:56 AM Where there is money to be made, there will be ways to circumvent things that the government says. Though I don't really understand people who are buying Bitcoin in China for no other reason but to go ahead and simply buy, I'd understand if miners were doing this in order to buy and build more and more miners in a time where the chinese government is starting to crack down on everything bitcoin (mostly mining now)
I don't see a purpose here, can't they all just use cash with ease? Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: nutildah on January 28, 2018, 02:03:39 AM Binance seems to be doing quite well. I noticed that when I was in Shanghai earlier this month I couldn't connect to most websites having to do with "bitcoin." I wonder where the majority of Binance customers are located.
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: connesa on January 28, 2018, 02:33:54 AM https://cointelegraph.com/news/how-chinese-bitcoin-buyers-are-getting-around-government-ban Quote Chinese citizens are still investing in Bitcoin and the cryptocurrency market despite the government’s heavy crackdown. In September 2017, Chinese cryptocurrency exchanges BTCC China, Huobi and OKCoin were ordered by the government to shut down their businesses. At one point, executives of the three cryptocurrency exchanges were prevented from leaving the country, due to a government investigation into local cryptocurrency exchanges. Three months later, in December of 2017, China’s three largest cryptocurrency exchanges relocated their businesses to Hong Kong. BTCC China, Huobi and OKCoin rebranded to BTCC, Huobi Pro and OKEx, respectively. They intended to address the rapidly growing demand from Hong Kong-based investors. Shortly after their move, the three trading platforms started to see daily volumes from Chinese investors grow exponentially. Somehow, Chinese investors were managing to circumvent Chinese trading restrictions by using Hong Kong-based exchanges. How is this possible? In Hong Kong, it is relatively easy for investors to set up businesses. With less than $1,000, businesses can be legally created, which allows the opening of business bank accounts at Hong Kong-based financial institutions. Beginning in December 2017, many Chinese investors moved their funds from their Chinese bank accounts to Hong Kong bank accounts and started to trade cryptocurrencies more actively, effectively bypassing China’s restrictions. But, unlike China, Hong Kong has a substantially lower supply to meet the growing demand. While China is home to major miners like Bitmain, Hong Kong does not produce much Bitcoin and other cryptocurrencies. As such, premiums in the Hong Kong cryptocurrency market increased, surpassing even that of the South Korean market. On January 18, when the global average price of Bitcoin was around $11,500, Bitcoin was being traded at above $13,000 on Huobi Pro. Krystal Hu, a Hong Kong-based finance journalist, noted that traders outside of China have also started to take advantage of the arbitrage opportunity presented by the Hong Kong market. For instance, on January 18, the price of Bitcoin on Coinbase was $11,800. Purchasing Bitcoin from Coinbase and selling it on any Hong Kong-based market would have generated $1,200 in profit. chinese government dont banned the bitcoin literally in china.they just banned the exchange,chinese government cant stop people frm using it coz the people already saw the potential.the reason why so many chinese goes here in hongkong,some change and liquidate their btc to fiat while others buy...hongkong is already improving got 3 bitcoin atm in central and 2 in tsim tsa tsui.so i dont think government can stop people frm it chinese themsaleves finds their own way. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: pooya87 on January 28, 2018, 04:53:54 AM thanks for sharing this.
it is a good answer to all those who are always wondering "what if government bans bitcoin". well Chinese haven't banned bitcoin exactly but you can see what happens. people will continue using bitcoin because it is decentralized and government has no say in whether or not people can use it. and that's not all. when they closed down exchanges, everyone's first move was to move on to decentralized way of trading bitcoin. things like localbitcoins for example where the choice. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: jseverson on January 28, 2018, 06:32:44 AM Quote In Hong Kong, it is relatively easy for investors to set up businesses. With less than $1,000, businesses can be legally created, which allows the opening of business bank accounts at Hong Kong-based financial institutions. Beginning in December 2017, many Chinese investors moved their funds from their Chinese bank accounts to Hong Kong bank accounts and started to trade cryptocurrencies more actively, effectively bypassing China’s restrictions. Lol what? So people are basically setting up fake businesses to open bank accounts? This is kind of shady, and with more and more people doing it, I feel like it will be addressed in the future. I mean, even if they do put up an online business of sorts, it would be nothing but a front to take advantage of the artbitrage. Then again, if this continues, the Hong Kong market will be flooded with Bitcoin and the prices would theoretically normalize. it is a good answer to all those who are always wondering "what if government bans bitcoin". well Chinese haven't banned bitcoin exactly but you can see what happens. people will continue using bitcoin because it is decentralized and government has no say in whether or not people can use it. That's true. It's incredible how resourceful these guys are. I feel like this more of a way for them to earn easy money by exploiting arbitrage rather than sidestep regulations though, given the fact that traders outside China have also been doing the same. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: adifariz on January 28, 2018, 07:03:01 AM the Chinese government also does not forbid bitcoin literally in china.they just forbid exchanges, chinese government can not stop people to use it because people have already seen that potential. The reason why so many chinese people go here in hongkong, some change and liquidate their btc for fiat while others buy ... hongkong has improved got 3 atm atm in center and 2 in tsim tsa tsui.so i dont think the government can stop people frm itsaleves china find their own way.
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: filharvey on January 28, 2018, 07:28:22 AM After china's government shutting down the three bitcoin exchanges there, still Chinese
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: Dapper on January 28, 2018, 07:43:07 AM While the Chinese government didn’t really ban its citizens from using bitcoins, it only banned the exchanges to close down and they were wise to move to Hong Kong where the Chinese government had no jurisdiction there so now they are not breaking the law there at all and Chinese nationals are not breaking the law since Bitcoins is not illegal there. Well, the Chinese government doesn't exactly 'have no jurisdiction' in Hong Kong. They have complete jurisdiction, after all, it is indeed a part of China. They just generally allow their own citizens and foreigners a little more temporary 'slack' in Hong Kong (and also Macau, the other SAR, for that matter). But there is a time limit, and anyone who does business in those areas know that the Chinese are slowing molding and squeezing those zones into exactly what they want them to be. It's like Arthur C. Clarke's "Childhood's End.' They are giving the regions 50 years (counting from 1999 for Macau and 1997 for Hong Kong) for play time, because look, in the blink of an eye, 20 years have passed, and soon 50 will as well, and after 50 years, everyone who used to know freedom or however it was like before will either be old or dead. That said, as for the Chinese people themselves, they view the entire world as China, since China is something that is inside a person, not just on a flag or passport, and they have long mastered going all over the planet and thriving wherever, so moving digital currencies around the globe is child's play. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: Kakmakr on January 28, 2018, 07:43:29 AM Not saying that they are doing this, but I would get a contact in another country and transfer the bitcoins to that person to sell or even relocate a family member or a whole family to another country to do this for me. <This way, zero taxes will go towards my country, because they do not want to support my technology>
Some are rumoured to use Localbitcoin for person to person trading. ^smile^ Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: yepaiyique2 on January 28, 2018, 07:44:57 AM At present the "fire coin net" this trading platform can continue to use!
Currently, due to the application of alipay and WeChat payment, the RMB is converted into usd! So the transaction is still going on, I wonder if the government will restrict the bank card, alipay, WeChat and other applications! Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: taeewo on January 28, 2018, 07:47:47 AM Binance seems to be doing quite well. I noticed that when I was in Shanghai earlier this month I couldn't connect to most websites having to do with "bitcoin." I wonder where the majority of Binance customers are located. They are located in my country.... LolTitle: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: cosmoo on January 28, 2018, 07:51:24 AM Maybe with VPN or virtual machine. You just need to be silent and careful and it'll be okay. And you always have one more way - to move from country.
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: Pursuer on January 28, 2018, 07:51:24 AM Not saying that they are doing this, but I would get a contact in another country and transfer the bitcoins to that person to sell or even relocate a family member or a whole family to another country to do this for me. <This way, zero taxes will go towards my country, because they do not want to support my technology> Some are rumoured to use Localbitcoin for person to person trading. ^smile^ I remember seeing a chart from localbitcoins.com showing an increased volume coming from China the same day the news from Chinese government regarding exchange regulations came out and in a short time it reached a lot higher! specially since price started rising right after this news. so yeah, people will always find a way of doing what they want when it comes to peer to peer stuff. look at how pirating has been alive and strong for many years even with all the raids and that is a real illegal thing that everyone agrees about. but there is nothing wrong with bitcoin... Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: MOKTOP on January 28, 2018, 07:54:31 AM I keep wandering way is this ban in almost the majority Of the countries like Mine also , I know that because of lack of regulation , but is not better to get a part of the cake rather then banning in better ? weird weird
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: xiaowu55 on January 28, 2018, 08:07:02 AM I think the impact on Chinese bitcoin buyers is very small.
They are still free to buy and sell bitcoins. Because exchanges are no longer in China. Moving overseas, Chinese buyers can still go to these exchanges. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: Mystezi on January 28, 2018, 08:37:33 AM Another way chinese buyers get around the government ban is by trading OTC themselves on websites (zb.com).There are hundreds of brokers working in wechat group seeling all sorts of coins.For example, if you live in Beijing and want to buy some bitcoins you can login to zb.com where you can find sellers across the whole china willing to accept RMB via wechat pay or alipay as a payment method.
Once your payment is verified by the exchange, the bitcoins will be transferred to you.So this is one way to buy bitcoin in China without complicated account opening and money transfer. Another method is the traditional exchange method such as buying from exchanges like Coinbase,Bitfinex.However,to find such overseas account with fiat currency,you will be restricted with the USD $50,000 per year limit for cross-border exchanges. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: Sithara007 on January 28, 2018, 08:45:06 AM The sooner the Chinese government realize that they can't ban Bitcoin, that better. What happened after they banned the crypto-exchanges in mainland China? The users just shifted to exchanges which are based in South Korea and Hong Kong. The main losers are local authorities in China, which are losing valuable tax revenue.
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: btcprospecter on January 28, 2018, 08:47:49 AM Crypto currencies have spread to epidemic proportions no country can truly ban it. Exchanges on the other hand can but as this shows they can just set up exchanges elsewhere.
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: xiaopang11 on January 28, 2018, 08:51:39 AM I don't think the impact on Chinese bitcoin buyers is huge.
Now China's exchanges have moved abroad. Chinese buyers only need to go to exchanges in other countries. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: icanscript on January 28, 2018, 11:05:42 AM https://cointelegraph.com/news/how-chinese-bitcoin-buyers-are-getting-around-government-ban Quote Chinese citizens are still investing in Bitcoin and the cryptocurrency market despite the government’s heavy crackdown. In September 2017, Chinese cryptocurrency exchanges BTCC China, Huobi and OKCoin were ordered by the government to shut down their businesses. At one point, executives of the three cryptocurrency exchanges were prevented from leaving the country, due to a government investigation into local cryptocurrency exchanges. Three months later, in December of 2017, China’s three largest cryptocurrency exchanges relocated their businesses to Hong Kong. BTCC China, Huobi and OKCoin rebranded to BTCC, Huobi Pro and OKEx, respectively. They intended to address the rapidly growing demand from Hong Kong-based investors. Shortly after their move, the three trading platforms started to see daily volumes from Chinese investors grow exponentially. Somehow, Chinese investors were managing to circumvent Chinese trading restrictions by using Hong Kong-based exchanges. How is this possible? In Hong Kong, it is relatively easy for investors to set up businesses. With less than $1,000, businesses can be legally created, which allows the opening of business bank accounts at Hong Kong-based financial institutions. Beginning in December 2017, many Chinese investors moved their funds from their Chinese bank accounts to Hong Kong bank accounts and started to trade cryptocurrencies more actively, effectively bypassing China’s restrictions. But, unlike China, Hong Kong has a substantially lower supply to meet the growing demand. While China is home to major miners like Bitmain, Hong Kong does not produce much Bitcoin and other cryptocurrencies. As such, premiums in the Hong Kong cryptocurrency market increased, surpassing even that of the South Korean market. On January 18, when the global average price of Bitcoin was around $11,500, Bitcoin was being traded at above $13,000 on Huobi Pro. Krystal Hu, a Hong Kong-based finance journalist, noted that traders outside of China have also started to take advantage of the arbitrage opportunity presented by the Hong Kong market. For instance, on January 18, the price of Bitcoin on Coinbase was $11,800. Purchasing Bitcoin from Coinbase and selling it on any Hong Kong-based market would have generated $1,200 in profit. Only stupid government officials can try to prohibit the use of crypto currency. The task is not feasible at this level of technology development. People will always find a way to get around these restrictions, simply from the principle. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: 1 currency now on January 29, 2018, 10:30:32 PM I don't think the impact on Chinese bitcoin buyers is huge. It's not, the China situation is only temporary. People in China should be able to trade with a VPN on their computer.Now China's exchanges have moved abroad. Chinese buyers only need to go to exchanges in other countries. Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: kasansa on January 29, 2018, 11:43:50 PM Surprisingly they were just continuing to buy bitcoins and the only difference is that they were now using counter sales to buy and sell bitcoins.
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: Justin Dowman on January 30, 2018, 01:18:58 AM Restrictive measures do not solve such issues. No technical and technological means of control over crypto-currencies.
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: bisdsad on January 30, 2018, 01:38:55 AM The Chinese government does not completely ban Bitcoin. They simply think that the risks of bitcoin and other cryptocurrencies are too high, and people are not encouraged to participate. If you still want to join, you can get through many ways, such as going to Hong Kong is a good example. Of course, I think the Chinese government will soon introduce corresponding policies.
Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: Hazaki on February 16, 2018, 12:46:25 AM People will eventually find ways to get around bans, restrictions and laws in general in ways that fulfill the same purpose without being illegal and that's what we call finding an ambiguity or inadequacy to circumvent the purpose that the particular law was made for . Such practices can be used into several fields and could lead to beat government at their own game . I remember when our country prohibited the import of a certain chemical component so compagnies just imported the two needed components to obtain it and just mixed them on our soil and thus acquired what they needed without violating any law . Even if the Chinese government imposes new restrictions i'm sure that people will find a way , with such volumes of bitcoins and altcoins created , such people won't be slowed down by some stupid attempts against fulfilling the purpose of Satoshi Nakamoto and making cryptos a way to exchange and store values without the intervention of third parties and thus avoiding centralization . Title: Re: How Chinese Bitcoin Buyers Are Getting Around Government Ban Post by: yepaiyique2 on February 16, 2018, 01:11:03 AM Chinese investors can still trade now!
They trade through the Internet! Trading is also very simple and quick! There are no technical restrictions, perhaps because government officials are on holiday. Perhaps limit trading is a fake news that doesn't exist! |