Bitcoin Forum

I am slightly confused about POBC News that is supposedly causing the recent slide in Bitcoin confidence.

Perhaps someone can explain and define the what is a "Third Party Payment Processor" serving Bitcoin exchanges in China, and how it's services are different from a bank transfer or service from another type of financial institution, and relate their function to an equivalent institution in Japan or the US.

Also BTC China announced it will find other ways to allow for CNY deposits. How is this likely to work?

only banks and the 10 biggest third party payment processors (chinese paypal [alipay] and some others) were forced to halt opperation with BTC exchanges. there are many other small payment processors, who might jump in. whether they get forced out as well is unclear right now.

I'm quit sure, the same will happen to them! otherwise the PBOC would make fun of them selfs!


this is not over!

Viajero, it certainly is not over as it appears to be seat of the pants legislation by the Peoples Bank of China, without any coherent strategy.

It's interesting that Paypal too has started to prohibit the sale of Bitcoin via PayPal, in various European Territories, unless sold by a licensed financial institution. This could either be to the large number of claims Paypal face by both buyers and sellers of Bitcoin, or that they see good reason to preempt the regulators tightening up on verification procedures.  It could also be they don't want the competition of Bitcoin which undermines its own by comparison huge 5% transaction charges.

the more established and successfull u already are, the less willing to take unnecessary risks. and bitcoin would be a very, very huge risk for paypal. they are not hostile, the CEO even invested in BTC but it makes no sence to drive their tremendously successfull company into murky waters just now.

that may very well change in the future...

Nobody really knows.  There are some sources for things.  But mostly just sell everything.  That's the real message.  At least, that's the only clear message I've been able to deduce from all the posting around here lately.

I have the same doubt "How is this likely to work?"

You are confused about "Third Party Payment Processor" well look at me who is confused why the hell biticoin or other crypto-currency exist in our world. It is just a trash that is valued by short term investors and as soon as these investors disinvest it then you shall be confused about its nil worth.

an example of 3rd party payment processors in america would be companies like  paypal, dwolla, and the various other companies that allow you to make transactions.

as far as BTCChina saying they will find a new way.... only time will tell if and how they can pull it off.  A company like BTCChina isn't likely to just throw in the towel right away though and say "yeah we are fucked, nothing we can do" so of course they are going to put the PR spin on things and stay optimistic and say they will try to find another way (as they should since they don't want to go out of business).

As far as others mentioning that there are smaller payment processors. I would imagine they would quickly get warnings or in trouble if they started working with bitcoin exchanges, especially considering the amount of attention and increased business it would bring them.  There's probably always someone out there willing to take that risk, but i dont think it would end well for them given the current state of things.

I would think BTCChina has the same feeling as of right now.  Of course as a company you cant just throw in the towel and call it quits right away, so you try to remain positive and figure out a way to fix the problem. They are trying, how well they will succeed will only be seen in due time.