Bitcoin Forum

BREAKING: China bans financial institutions from Bitcoin transactions ...


http://inagist.com/all/408505176170184704/

FUD

itshappening.gif
here we go

Yes... it is real. The Chinese central bank warns banks against BTC transactions.

http://in.reuters.com/article/2013/12/05/china-bitcoin-idINDEE9B405S20131205

http://in.reuters.com/article/2013/12/05/china-bitcoin-idINDEE9B405S20131205?type=economicNews


(Reuters) - China's central bank warned on Thursday that financial institutions should not trade the digital currency bitcoin, saying that while it does not yet pose a threat to China's financial system, it carries risks.

The central bank also said in a statement on its website that it will act to prevent money laundering risks from bitcoin, a prominent digital currency that is not backed by a government or central bank.

It said however that ordinary individuals were free to use bitcoin, so long as they took on the risk themselves.

It will also closely monitor risks associated with bitcoin. Those risks include the possible use of the currency for illegal activities and for speculation, it said.

(Reporting by Jonathan Standing and Aileen Wang; Editing by Kim Coghill)

Beginning of the end for China's bitcoin boom?

can't seem to find the article on Bloomberg..
I did find this though:
Bitcoin transactions unlikely to be banned: BTC China CEO
http://www.wantchinatimes.com/news-subclass-cnt.aspx?MainCatID=0&cid=1102&id=20131204000002 (http://www.wantchinatimes.com/news-subclass-cnt.aspx?MainCatID=0&cid=1102&id=20131204000002)

This is old news. They also said that bitcoin is still allowed to be traded in the grey market.

It will certainly be spun that way by everyone looking for cheap coins.

Well the message on BloombergNews twitter is "BREAKING: China bans financial institutions from Bitcoin transactions" which is different than "warned" so it's either bad/false reporting, a hack, or China have changed tactics and are outlawing something...

Edit, BTCchina is down right now, and bitcoin price is sinking.

Or a Bloomberg employee wants cheaper coins.

Can you translate your findings for the rest of the group

Google translate of announcement at http://www.pbc.gov.cn/publish/goutongjiaoliu/524/2013/20131205153156832222251/20131205153156832222251_.html

To protect the property rights and interests of the public, to protect the legal status of the yuan currency to prevent money laundering risks and maintain financial stability, the People's Bank of China, the Ministry of Industry and Information Technology, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission have jointly issued the "People's Bank of China Ministry of Industry and Information Technology of China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission on the Prevention of Bitcoin risk notification" (Yin Fa [2013] No. 289, hereinafter referred to as "" Notice "").

"Notice" clearly the nature of Bitcoin that Bitcoin is not issued by the monetary authorities, such as not having sex with mandatory legal tender currency property, not the true meaning of money. From the nature point of view, Bitcoin is a specific virtual goods, does not have legal status and monetary equivalent, can not and should not be used as currency in circulation in the market. However, Bitcoin transaction as a commodity trading behavior on the Internet, ordinary people have the freedom to participate in the premise own risk.

"Notice" requirement, at this stage, financial institutions and payment institutions are not allowed to Bitcoin price for the product or service, may not be sold or traded bitcoins as a central counterparty shall not be covered with bitcoin-related insurance business or insurance will be included bitcoin range not indirectly provide customers with bitcoins other services, including direct or: to provide customers with Bitcoin registration, trading, clearing and settlement services; accepts bitcoins or bitcoins as payment and settlement tools; carry with bitcoins RMB and foreign currency exchange services; conduct Bitcoin storage, hosting, mortgages and other services; issue with bitcoin-related financial products; would bitcoins as trusts, investment funds and other investment targets.

"Notice" requirement, as the main trading platform Bitcoin Bitcoin Internet sites, should be based on the "PRC Telecommunications Regulations" and "Internet Information Services", shall be filed in the telecommunications regulatory agencies. Meanwhile, for the Bitcoin has a high risk of money laundering risk and used by criminals, the "notice" requirement in accordance with the requirements of the relevant authorities, "the PRC Anti-Money Laundering Law" and earnestly fulfill customer identification, suspicious transaction reports and other statutory anti-money laundering obligations, effectively preventing money laundering associated with Bitcoin risk.

To avoid Bitcoin and other virtual goods by a "virtual currency" in the name of excessive speculation, harm the public interest and the Renminbi, the lawful currency status, "notice" requirement of financial institutions, payment institutions in their daily work should be the proper use of money concept, focused on strengthening the Education of the public currency of knowledge, the correct understanding of the currency, a correct view of virtual goods and currencies, rational investment, the reasonable control of investment risk and safeguard their property and other concepts included in the content of financial literacy activities, and guide the public to establish a correct concept of money and investment philosophy.

In the future, the People's Bank will be based on their responsibilities and continue to pay close attention to the movements of Bitcoin and associated risks. (End)

Accessories:

People's Bank of China Ministry of Information Industry and the China Banking Regulatory Commission

China Securities Regulatory Commission, China Insurance Regulatory Commission

Notice on guard against the risk of bitcoin

Recently, a calculated through a specific computer program called "Bitcoin" (Bitcoin) caused widespread concern in the international community, the country also has a number of agencies and individuals with the opportunity to hype Bitcoin Bitcoin and related products. To protect the property rights and interests of the public, to protect the legal status of the yuan currency to prevent money laundering risks and maintain financial stability, according to "People's Republic of China People's Bank Law", "PRC Anti-Money Laundering Law," "Law on Commercial Banks "" relevant laws and regulations of the PRC Telecommunications Regulations "and other relevant matters are hereby notified as follows:

A correct understanding of the properties of bitcoin

Bitcoin has no central issuer, limited amount, using four main features without geographical restrictions and anonymity. While Bitcoin is called "money", but because it is not issued by the monetary authorities, such as not having sex with mandatory legal tender currency property, not the true meaning of money. From the nature point of view, should be a particular Bitcoin virtual goods, does not have legal status and monetary equivalent, can not and should not be used as currency in circulation in the market.

Second, financial institutions and payment institutions may not conduct business associated with bitcoins

At this stage, the financial institutions and payment institutions are not allowed to Bitcoin price for the product or service, may not be sold or traded as a central counterparty bitcoin not associated with underwriting insurance business or Bitcoin Bitcoin into the insurance coverage shall not directly or indirectly, to provide customers with bitcoins other related services, including: providing customers with Bitcoin registration, trading, clearing and settlement services; accepts bitcoins or bitcoins as payment and settlement tools; conduct Bitcoin exchange with RMB and foreign currencies services; conduct Bitcoin storage, hosting, mortgage and other services; issue with bitcoin related financial products; would bitcoins as trusts, investment funds and other investment targets and so on.

Third, strengthen the management of Internet sites bitcoin

The "PRC Telecommunications Regulations" and "Internet Information Services", provides Bitcoin registration, transaction services such as Internet sites should be filed in the telecommunications regulatory agencies.

Telecommunications regulatory agencies to identify and punish according to the views of relevant administrative departments, shall be closed down on illegal Internet sites bitcoin.

Fourth, the prevention of money laundering risks that may arise bitcoin

People's Bank of China should pay close attention to the various branches of Bitcoin and other similar anonymous, cross-border flow of convenient features such as virtual goods movements and posture, carefully judged the risk of money laundering, research to develop targeted preventive measures. Agencies should be set up branches and offer Bitcoin registration, trade and other services in the area of ​​anti-money laundering regulation into law, and urge them to strengthen anti-money laundering monitoring.

Registration provides Bitcoin transaction services such as Internet sites should earnestly fulfill anti-money laundering obligations, the user identity identification, registration requires users to use their real names, registered name, identity card number and other information. All financial institutions, payment institutions and to provide bitcoin registration transaction services such as Internet sites, such as suspicious transactions with Bitcoin and other virtual goods related, shall immediately report to the China Anti-Money Laundering Monitoring and Analysis Center, and with the People's Bank of China's anti- money laundering investigations; found using bitcoins for fraud, gambling, money laundering and other criminal activities clues, should be promptly reported to the police.

Fifth, strengthen the education and knowledge of the investment risk of the public money tips

Departments and financial institutions, payment institutions in their daily work should be the proper use of money concept, focused on strengthening the education of the public currency of knowledge, the correct understanding of the currency, a correct view of virtual goods and currencies, rational investment, reasonable control investment risk, maintenance own property and other concepts included in the content of financial literacy activities, and guide the public to establish a correct concept of money and investment philosophy.

The financial regulatory agencies can develop relevant implementation rules in accordance with this notice.

Please People's Bank of China Shanghai headquarters, branches, business management department, the provincial capital (capital) city center branch of this notice will be forwarded to each of the local financial institutions and payment institutions within the jurisdiction. The new case was found during the execution of this notice, the new problem, promptly report to the People's Bank of China.

Contact: Zhang obsessed, Tel 010 -66194489

People's Bank of China

Ministry of Industry and Information Technology

CBRC

SFC

CIRC

December 3, 2013

Pulling it through google translate, it ain't great news.
- Business and Financial instruments banned from bitcoin
- Bitcoin trading platform needs to be registered under Telecommunication Act
- Users are still allowed to trade - at own risk.
- Bitcoin is a high risk for money laundering.
Very firm statement from PBC that Bitcoin is not money.

http://tech.sina.com.cn/i/2013-12-05/15538979079.shtml

No. You Western guys completely misunderstood the news. To me, this is actually BULLISH!

TL;DR, the document says:

1. Bitcoin is a virtual commodity, not a real currency

2. People have the freedom to trade bitcoin, but they need to take their own risk

3. At this stage, financial institutions cannot denominate services and products in bitcoin, cannot trade bitcoin, cannot run bitcoin exchange, cannot provide bitcoin related services, cannot store bitcoin for clients, cannot establish bitcoin trust or fund, etc.

4. Bitcoin exchanges must be registered, and follow AML and KYC rules

This means major Chinese bitcoin exchanges like BTCChina will stay. You just won't see any Chinese bitcoin ETF anytime soon.

This is COMPLETELY wrong. It only targets financial institutions, i.e. banks, insurance companies, etc.

What remains then ?! Its banned and its not a currency .

People can still trade and spend bitcoin. Exchanges will be regulated, not banned. ONLY financial institutions can not touch it.

Sorry my Chinese ain't great and Google is still rusty in its translation.
Do I understand your comment correctly then that business can still accept bitcoin for products?

Hahaha this isn't breaking news. This was announced a few days ago. They won't recognize it as a currency but you are allowed to be traded in the grey, which means at your own risk and therefore allowing bitcoin to be implemented the way it's creators intended... For now lol

you serious? so there's that kind of lag.. amazing how 1 bit of information could cause cascading panic, and people can end up losing much of their wealth.

1. People have freedom to trade bitcoin at their own risk

2. Financial institutions and payment processors cannot offer bitcoin-related service

3. Other business are not mentioned. Based on the previous 2 points, I can't see why Starbucks can't accept bitcoin.

People can trade it so what , so Bitcoin is just a speculative instrument ? What happens to mass adoption ? What happens to China lead ? What happens to a world currency ?

Where was it published a few days ago? The chinese and western sites being referenced here and on reddit all say 5th December.

This may be the last great opportunity to buy up a lot of bitcoin at the bottom. Hope you have your dollars ready! Only holdup is going to be the damn coinbase transaction limit.

It is only financial institution can't involve bitcoin. Other business like Starbucks can accept it

Who cares ? Starbucks can accept what ever they want its like a coupon , that being said i doubt big businesses in China will accept BTC after this news , we shall see ...

Bottom line it is not a currency and it will not be treated as one ( according to China ) .

This is so funny. Nothing has changed lol. Everything is still inthe grey and it fine. If they want cheaper coins, sure why not I like buying cheap coins ;)

good news for two reasons: china gov acknowledges current situation and weak hands no longer holds bitcoin :)

Well... it depends on what technical data you put your faith in. You got them who say its gonna go at a steady rate, like the pic above. But you also have the people who say this is going to be an S-Curve. Showing how we are already in the 1200 range, and shouldn't be there for another 9 months, makes me lean more towards the S-Curve theory.

No worries. Thanks for the link.
As a decentralized currency in a centralized world, this is fine, this is great because centralized governments are allowing Bitcoins to be integrated into the grey market.

I just believe that for coming months, as soon as btc price has mini crashes, there are swarms of real dollars out there waiting to absorb it and push it back up. By the time the flush is over, the long term trend will be catching up. If btc ever drops below 300 again I'll be buying SOOoooo much to DCA my costs.

Congratulations on the successful attempt to get some cheap coins.

Mods should edit the title:
Bloomberg : BREAKING: China bans warns financial institutions against use of Bitcoins

This is actually good news:

Hatemongering Chinese authorities do not recognize heterosexual currency relationships!

Its breaking and its banned , financial institutions are not allowed to touch BTC period .

Yea google translate always had sexist tendencies.

Can anyone tell me how this is going to affect BTC-China and other Bitcoin exchanges which operate from China?

Some sort of government regulation is necessary, as we have seen scams recently (like GBL) in China.

http://www.pbc.gov.cn/publish/goutongjiaoliu/524/2013/20131205153156832222251/20131205153156832222251_.html

5th of DEC .

Exchanges in China are not considered financial institutions as far as I understand.

http://www.bloomberg.com/news/2013-12-05/china-s-pboc-bans-financial-companies-from-bitcoin-transactions.html

The CCB statement says crypto exchanges must register.
Obviously, not all exchanges will register, so the number of exchanges in China will go down, but at least only legitimate exchanges will stay. It should be a good thing. Bullish.

That is very good news. The only negative point I can think right now is that the fee is probably going to go up a bit (as there will be additional taxes and regulatory expenses).

I actually like the news.

Yes this is the official announcement but all the details publicized were reported on in the news since nov 20 to dec 3 and now today the 5th.


Gordon G. Chang, Contributor
I write primarily on China, Asia, and nuclear proliferation.

OP/ED | 11/24/2013 @ 6:42PM |29,019 views
A China Triangle: Bitcoin, Baidu And Beijing

And if there were any doubts that the central government favored Bitcoin, Yi Gang on Wednesday erased them.  The deputy governor of the People’s Bank of China, the central bank, said although Beijing would not recognize Bitcoin as a medium of exchange soon, people were free to participate in the Bitcoin market.
Yi’s words were significant because Chinese law actually forbids acquiring and using Bitcoins.  The Ministry of Commerce and Ministry of Culture in 2009 jointly issued rules that outlawed the use of virtual currency in the real economy, specifically the exchange of such currency for goods and services, or the exchange of it for renminbi.  The ban was imposed in response to the widespread acceptance of QQ, the virtual currency of Tencent, the Chinese social media giant.  QQ, incredibly, had grown to about 13% of the Chinese cash economy.  People traded QQ in public areas, and it was accepted in shops.  Tencent itself brought QQ back under control “overnight” because Beijing ordered it to do so.  The Bitcoin algorithm was released online just months after Tencent was forced to rein in its virtual currency.

This was a chit chat talk , doesn't matter that much , until the official announcement with the details , which was today 5/12/2013 :

http://www.pbc.gov.cn/publish/goutongjiaoliu/524/2013/20131205153156832222251/20131205153156832222251_.html

Somebody is desperate to buy back in at a lower price...

LOL Bitsurprise, aka Fuddy McFudster, single-handedly caused a ~25% mini-crash in the bitcoin price last night by posting this thread with a ridiculous title.

Lol everyone got scared yesterday because of these news, that's why the price dropped?
In my opinion it was actually only a matter of time until china will make an official statement about BTC