http://www.caixinglobal.com/2017-09-13/101144679.html
Behind a paywall, but first paragraph is supportive of blockchain, which is encouraging:
China’s recent ban on cryptocurrency crowdfunding should not deter future research on blockchain technology that backs those “coins,” the country’s central bank said.
Last week, China became the first country to outlaw raising funds through virtual currencies that are built on this young and more secure computing technology. The People’s Bank of China (PBOC) and six other regulatory bodies deemed so-called initial coin offerings (ICOs) illegal, leading to the almost immediate closure of at least two-thirds of the country’s 60 ICO platforms.
Rumours in Chinese financial circles - according to someone I know in Shanghai who works for an exchange - says that the authorities are always very nervous before CPC Congresses - the 19th Congress opens on 18 October.
Apparently, small investors have been complaining about losses on ICOs and threatening to protest on the streets. The authorities have form on making seemingly draconian moves only to reverse once dangers of things getting out of hand calm down.
Strange though that there hasn't been any follow up on the Caixin story about exchanges being closed. Is there an argument going on at the top? Maybe they don't want to be surrender their position in the crypto space. Who knows? Thoughts people?
Very interesting take! Thank you for sharing. I am slightly encouraged by the opening line of the Caixin article; it seems to suggest that the emphasis is still on ICOs, not cryptocurrencies. As Bruce Fenton indicated yesterday, the Chinese population has billions of dollars in wealth stored in BTC/cryptocurrencies. So, to try to prohibit them specifically would lead to revolt, and to pass measures that are too draconian might also.
Still, this is like a black cloud hanging over our heads. Uncertainty is bad for investors. And if it is like the "China bans Bitcoin" rumors from 2014, then we will never get any official announcement. The uncertainty could result in a prolonged bear market, considering how important China is.
