What if bitcoin is regulated in China?

[hl5460]

Today's people's daily released an article calling for regulation of bitcoin or digitial currency, which was soon reposted by major medias, including this one.


On 15th Oct, 1st Global Blcokchain Summit will be held in Shanghai. Detailed agenda here.



Looks like more regulations and more players are on the way.

[ikydesu]

This is will be a good news and will make a price jump.

China is dominate for anything on this world. I see bitcoin regulation in China is in yellow color(restricted).

[Wei H]

This is will be a good news and will make a price jump.

China is dominate for anything on this world. I see bitcoin regulation in China is in yellow color(restricted).

Yeah, everything is restricted by default in China, we unban something. While things always be free in your world.

[Kakmakr]

Most of the major players were invited and I wonder whether Bitcoin or the Blockchain will be the dominant discussion point on their agenda. Can someone translate the agenda points for us?

If they talk about the Blockchain, it might be good for China. The global scene are turning towards Blockchain based technology and if they follow that trend, it might be more positive.

China are currently heavily invested into Bitcoin mining, and it will be nice to know that they will be growing a industry around that. It's good for exports and create a lot of job opportunities.  

[NorrisK]

Whichever governments want to extract the greatest percent of GDP growth (collect the most tax dollars) for their country from this new technological revolution will be the first ones who give regulatory clarification and those with the least legal regulations will get an additional GDP boost.

Just like how the countries that industrialized first had a GDP growth advantage over those who industrialized last. The early adopters get the most benefit.  Just as the early bitcoin adopters did better than the rest of us late to the party Rip Van Winkles, the early Countries who adopt crypto will get much more benefit than those who are late to the party.  

The early bird gets the worm, and it looks like China is hungry.  The sun rises in the east after all it seems.

They will first need to find a way to enforce the taxes.. It will be very difficult in the early days to keep track of bitcoin and wether taxes are being paid.

I don't see the early countries benefitting more in this way. It will probably be those sitting on the sidelines, first creating a method to extract taxes, that will profit.

[CoinBateman]

I suspect the reason they are looking at regulating bitcoin is a part of their capital control restricting the outflow of money from the country. Right now, Bitcoin is actually he best way to do that right now.

[Melds]

So are they still going to treat bitcoin like postage stamps?

[Blue_Tiger73]

I think that if bitcoin was regulated in China, it would be a good thing. China is one of the biggest countries and contributes to a lot of the economy with its exports. Bitcoin would most likely go up as more people would want it, but there would still only be a certain amount of it and that amount is not changing. 

[Amph]

i dunno if they would still invest big in bitcoin, even if regulated, when they are contorlling and mining a shitload of coins everyday

those that are already interested should be in, in any case even now, it's not like it is banned, you can trade there without problem

[Melds]

Random billionaire to take an interest in Bitcoin would change things.

There are plenty of them in China that's for sure.

[randy8777]

Random billionaire to take an interest in Bitcoin would change things.

There are plenty of them in China that's for sure.

if 1 billionaire is going to actively invest in bitcoin then others will follow. this everything can bring bitcoin into a new bubble phase. but this is purely speculating.

[RKing]

I think that if bitcoin was regulated in China, it would be a good thing. China is one of the biggest countries and contributes to a lot of the economy with its exports. Bitcoin would most likely go up as more people would want it, but there would still only be a certain amount of it and that amount is not changing. 

If bitcoin can be used for buying/selling, importing/exporting goods, and gradually replace US dollar, then it is good.

[ranochigo]

It is hard to regulate Bitcoin anywhere. They can impose laws on exchanges but they cannot stop people from trading Bitcoin. Even if the exchange closes, big miners can still trade with others overseas and still make a profit. Governments cannot shut down mining farms as they are relatively hard to find.

[NeuroticFish]

If it gets "regulated", it will get closer to "legit" and more people will be confident to put their money in.
If the regulation is not good enough, the current users will not leave the bitcoin world, there are a lot of means to still use bitcoin. (Banning bitcoin never worked well.)

So overall it's a good news imho.

[hl5460]

I suspect the reason they are looking at regulating bitcoin is a part of their capital control restricting the outflow of money from the country. Right now, Bitcoin is actually he best way to do that right now.

Good point. Another news is the 7 trillion Chinese QE.

[Mickeyb]

Whatever any country in this world decides, China as well, can have only short term consequences on the Bitcoin price. Long-term I don't think that can be done any harm, unless the whole world gets together and bans Bitcoin collectively, and this will never happen.

So I am not worried much. Everybody will govern Bitcoin as they feel they supposed to. Even China, they restricted bank account connections to the Crypto exchanges in April, Chinese have still found the way to put money in and out of the exchanges.

[christycalhoun]

I still see chinese users still using bitcoin even if it was classified as illegal.

[RKing]

I still see chinese users still using bitcoin even if it was classified as illegal.

Bitcoin is not illegal in China. Only bank are not allowed to transact it directly. You can still buy and sell bitcoin in exchanges.

[n2004al]

If bitcoin will be regulated in some country (whosoever it will be) this would be a great news for the community of bitcoiners. But if regulated in China this would be the BIG news for everyone which believe in bitcoin. The importance of this country in the world, its increasing power and development make this news really great. After USA maybe China is the most important country which had (if will be so) regulated it.

To not forget that China has the biggest figures about bitcoin. The most number of miners are from China and according to Coindesk, China has a strong competitive advantage in bitcoin mining; it currently accounts for at least 50% of the global bitcoin network mining power and about 3.6 million bitcoin wallets have been created with bitcoin wallet provider Blockchain, while Coinbase has over 2.3 million users.

Let's hope that this news will be followed from other steps and the status of bitcoin in China go from "restricted" in "regulated" and "legal".

[Q7]

While I frown upon the idea of regulation, I think if that means bringing bitcoin popularity and adoption towards the next level, then I'll agree to it. I hope by having some form of control, this will instill trust and confidence of those people having doubts towards bitcoin. Sometimes you just have to sacrifice something and that's a fact.