Bitcoin Forum

I love that, over a day into the news, nobody seems to have any freakin' clue what's going on. We can't even get a clear translation, much less a clear legal interpretation. Did they ban vendors from accepting BTC, did they just ban BTC-denominated bank accounts, did they ban banks from dealing with businesses using bitcoins, did they ban bitcoin exchanges, did they clarify what bitcoins are as a taxable entity?

Are they just trying to kill bitcoin with regulatory uncertainty?

Just financial institutions, not the people.

Wich means selling and buying bitcoins in china suddenly is almost impossible.

China is not a free nation.

1. You cannot sell any item for btc
2. You can trade btc but you need to have you govt id on record
3. You can speculate on btc.

Hence the 'crash'

Wich means selling and buying bitcoins in china suddenly is almost impossible.

China is not a free nation.

Essentially yes! You can no longer fund your trading account with a bank, you no longer withdrawal your Bitcoin in your bank! All of the web sites in China that accepted Bitcoin no longer accept it. China says there citizens can still trade it but they made it impossible for them to do so! Essentially it's technically illegal to use Bitcoin in China!

Essentially yes! You can no longer fund your trading account with a bank, you no longer withdrawal your Bitcoin in your bank! All of the web sites in China that accepted Bitcoin no longer accept it. China says there citizens can still trade it but they made it impossible for them to do so! Essentially it's technically illegal to use Bitcoin in China!

Hi, I am in China at this moment and I can tell you that banks and bankers are buying bitcoins at lower price at this moment!

Can anyone confirm whether everyone in BTC China won't be able to cash out? That seems to be a ludicrous assertion. How could the central bank say that they allow exchanges but then no one can buy or sell for CNY. That doesn't make any sense to me.

Rather I am thinking they only banned the financial institutions from trading in Bitcoin.

What would all the current BTC China holders do if they can't cash out in CNY? Cash out in another currency abroad?

http://www.coindesk.com/baidu-stops-bitcoin-price-slumps-again/


That doesn't appear to say that BTC China can't have a bank account in CNY. Or does that mean BTC China would have to take physical CNY and be its own bank? Ludicrous.

Some say this:


Did China really make it illegal for merchants to accept Bitcoin? Thus they killed any chance for it to be used a currency?

Okay that is pretty bad. That blows the bubble of "China is coming".

Without use as a currency, Bitcoin is dead in China.

Are you sure of your interpretation? Why didn't Mike Lee say this, seemed I read he had positive things to say about the ruling?

Can we still buy and sell Chinese using BTC, that's the real question.

Note the important correction.


My father is a former West Coast division head attorney for Exxon. I appear to have inherited some of his high IQ ability to interpret the law.

I can't find anything in this document that specifically bans the bolded assumption.

This document is merely stating that Bitcoin will not be allowed to circulate widely as a currency to compete with RMB, because all volatility risk will remain outside the financial sector in the private parties and exchanges. It is very free market way of saying Bitcoin will not be backed by the government's system. There is nothing stopping businesses from accepting it, and converting it to RMB via a registered exchange.

The government will not likely clamp down on small scale acceptance, as it presents no credible threat to RMB. As we all see now, businesses are forced to convert to fiat immediately if they have significant expenses in fiat, i.e. Bitcoin presents no threat to fiat at the moment because of its volatility and the need for businesses to have fiat to pay their employees and operating expenses, etc..

Note small scale in China is big scale relative to current Bitcoin market size given the large population. Bitcoin is only in the tens of $billion range of market cap. Fiat finance is in the hundreds of $trillions. Bitcoin can grow immensely while still being small scale relative to fiat finance market size.

Whereas, (small) businesses could keep their profits in BTC, as easydns did (PenAndPaper username). Of course big businesses can't because the Bitcoin market cap is too small any way, besides big businesses are not into such risk.

The document is saying that non-financial entities must accept risk of holding BTC.

So this does not to stop the trajectory of Bitcoin in China. Exchanges can still operate and are not prevented from having a bank account to operate with. The document only bans financial institutions (and payment providers) from being market makers, underwriting, insurance, etc. In other words, all the risk and market making must be done by individuals and exchanges.

What they have done is simply kept Bitcoin in the free market-- the wild west.

This is an extremely bullish outcome. They have clarified that Bitcoin is legal for its small scale free market functions.

The Baidu thing is very suspicious. They accepted for a very small portion of their business which was misunderstood and caused a euphoria, then they dump when people misunderstand the ruling above, in order to create panic. Looks like some manipulators are getting rich on BTC pump & dump & rebuy on the dump.

Yes they can.

My father is a former West Coast division head attorney for Exxon. I appear to have inherited some of his high IQ ability to interpret the law.

Hi, I am in China at this moment and I can tell you that banks and bankers are buying bitcoins at lower price at this moment!

Essentially yes! You can no longer fund your trading account with a bank, you no longer withdrawal your Bitcoin in your bank! All of the web sites in China that accepted Bitcoin no longer accept it. China says there citizens can still trade it but they made it impossible for them to do so! Essentially it's technically illegal to use Bitcoin in China!

Of course they banned it.

You will risk imprisonment if you use it, but they can't let the Westerners know that. They need to be careful about what they state in their public releases. I would expect the chinese exchanges to slowly be closed down or at least have to go through a more vigorous "bribes (red envelope)" process.

In the crackdown on QQcoins, lots of people went to jail. Yet QQcoins are still traded today.

Hi, I am in China at this moment and I can tell you that banks and bankers are buying bitcoins at lower price at this moment!