China Prepares To Impose Curbs, "Capital Controls" On Bitcoin

[roguetrader]

As seen on Zero Hedge : http://www.zerohedge.com/news/2016-11-03/china-prepares-impose-curbs-capital-controls-bitcoin

[Shiroslullaby]

2017 is going to be very interesting for Bitcoin.
Government agencies in China and the US are starting to look at possibly regulating exchanges and Bitcoin transactions.
This may lead to new laws passed governing these sites which could be a good thing to prevent users from being scammed,
but could create new taxes and fees on earnings.

I'm not sure what this all means but big changes could be coming.

[pereira4]

That will only make bitcoin's price go higher. We have learned from past experience that when governments try to crush bitcoin, the bitcoin price goes higher and the volume of transactions too. They are going to learn the hard way that bitcoin cannot be stopped.

[Chin Cheng]

so the freedom will be over soon ,all the government all over the world starts implementing rules pretty soon to curb money laundering and illegal activities relating to crypto currencies

[De Selby]

I don't carry about capital controls. Those can be easily circumvented. What I worry about is the Chinese government declaring mining illegal. That would be truly catastrophic.

[Milkduds]

With all these trade agreements in the air needing to be signed,I find it hard to believe they are fast tracking a clamp down on bitcoin. China I can understand as the are always worried about their population getting money out of the Country into safer and less restrictive areas. But the USA will have to drag it out if they plan to clamp bitcoin,as whoever wins will have a lot of explaining to do once the daggers fully come out.

[amacar2]

Chinese officials are considering policies including restricting domestic bitcoin exchanges from moving the cryptocurrency to platforms outside the nation and imposing quotas on the amount of bitcoins that can be sent abroad

How they gonna know who sended how much of bitcoin abroad, using bitcoin mixing services make it even harder to track bitcoin transactions, main question will be how they gonna limit cross border bitcoin transaction.

For sure they may soon gonna implement limitation on amount people can buy or sell daily directly from exchange but they can't just stop bitcoin transaction related to cross border payment.

[chesatochi]

I don't carry about capital controls. Those can be easily circumvented. What I worry about is the Chinese government declaring mining illegal. That would be truly catastrophic.

If China ban the mining operations one day, the worst that can happen, other countries will take the lead. With a new law or regulation, people need to adapt and think a different way.

[Carlsen]

I don't carry about capital controls. Those can be easily circumvented. What I worry about is the Chinese government declaring mining illegal. That would be truly catastrophic.

If China ban the mining operations one day, the worst that can happen, other countries will take the lead. With a new law or regulation, people need to adapt and think a different way.

I think that even if mining would be declared to be illegal by the government, China would still be China.
The miners would have to pay some official to look in another direction. I think that is how things work there, with almost everything.
So it is very likely that a ban of mining would have nearly no impact on bitcoin.

[Pursuer]

I may be wrong about this but I have got the feeling that news about China these days are like news about Russia which has been the hot topic of some time ago.

we kept hearing all kinds of outrageous news about Russia and banning bitcoin,... and it never happened. in fact the news was a misinterpretation of the real news in Russian and mostly click bait. and I have the feeling that news sites are making the China news a bit bigger and more negative than it really is.

[Catmony]

I may be wrong about this but I have got the feeling that news about China these days are like news about Russia which has been the hot topic of some time ago.

we kept hearing all kinds of outrageous news about Russia and banning bitcoin,... and it never happened. in fact the news was a misinterpretation of the real news in Russian and mostly click bait. and I have the feeling that news sites are making the China news a bit bigger and more negative than it really is.

Yes actually it seems few news site are making news about chinese government planning about policy to tighten law as they gonna implement limiation like by tomorrow. Fud is everywhere regarding this and every site have described this in their own words, we have also seen several similar fud regarding china gonna ban bitcoin, china have banned bitcoin etc news in past also.

[Barbut]

China's authorities realized how the digital currency was being used to bypass capital controls, and launch a crackdown on bitcoin, as they have with most other capital outflow measures.

This shows that one big country get scared from bitcoin, looks like people there believe a lot in bitcoin and their investing in that made a damage on Chinese yuan. Also they can`t control all that as they thought they will, now they will try to make some new laws about bitcoins.
Fight for market is started, and I think other governments will try to do something similar. Bitcoin needs to survive this attacks and then maybe we can see bitcoin becoming mainstream.

[clickerz]

so the freedom will be over soon ,all the government all over the world starts implementing rules pretty soon to curb money laundering and illegal activities relating to crypto currencies

That is what I am afraid of this regulation or news from China.Maybe they have a good intention to curb illegal activities but it will also possible raise the charges on transactions.i hope it will not rise to another "alternative" bitcoin.

[severaldetails]

so the freedom will be over soon ,all the government all over the world starts implementing rules pretty soon to curb money laundering and illegal activities relating to crypto currencies

That is what I am afraid of this regulation or news from China.Maybe they have a good intention to curb illegal activities but it will also possible raise the charges on transactions.i hope it will not rise to another "alternative" bitcoin.

I am sure that if such a law really comes in China, it will cover all possible forms of crypto currencies, not only bitcoin.
What I still do not get is how such a law could harm bitcoin. Why exactly would a regulation of exchanges in China be a bad thing?

[tyz]

Bitcoin has never been popular with the Chinese government. A ban would damage Bitcoin only in the short term, as many Chinese miners consider whether it is still useful to mine because penalties in China are tough. But in the mid and long term no regulation can Bitcoin stop.