Insider: China gov warns citizen about the incoming crack down on exchangers

[pooya87]

Bitcoin market rate in CNY already falls below negative value compared to USD and EUR market.
~~

Bullshit in the first line so we don't even have to read on to see what the hell he is talking about.
here are the so called negative values in CNY:
OKCoin:   4,825 CNY =    714.28 USD
BTCC:    4,815 CNY =    712.81 USD
Huobi   4,821 CNY =    713.73 USD

and by the way these three exchanges have 2,549,523,000 USD combined volume in the last 24 hours alone with their prices even higher than USD markets.

[zby]

Eventually this will suppress the price -but if people realize that this is their last occasion to buy bitcoins before the gov closed the exchanges - then this can result in a mega pump.

from china? if i were in that situation i'd be having a mega dump and walking away somewhere around right about now if something like this was a dead cert.

we've yet to see how a vibrant ish bitcoin scene would weather some type of government strangulation, and forget trying to block the protocol, all you gotta do to deter 99% of people is shut the exchanges, but i don't think many people are gonna stick around for a money that has no use to them.

You are missing the point that the Chinese want to move funds out of China - bitcoin is one avenue to work around the $50K annually limit. If it becomes obvious that this avenue is being to be closed - then people will flock to move their funds as quickly as possible.

[amacar2]

Bitcoin market rate in CNY already falls below negative value compared to USD and EUR market.
~~

Bullshit in the first line so we don't even have to read on to see what the hell he is talking about.
here are the so called negative values in CNY:
OKCoin:   4,825 CNY =    714.28 USD
BTCC:    4,815 CNY =    712.81 USD
Huobi   4,821 CNY =    713.73 USD

and by the way these three exchanges have 2,549,523,000 USD combined volume in the last 24 hours alone with their prices even higher than USD markets.

Yes actually price have already got effected due to fud few days ago and no any traders with little bit of common sense gonna fall into same FUD again and again. Market have already reacted on fud due to panic traders and now whales seem to getting ready to start another big pump wave.

[chaser151]

Bitcoin market rate in CNY already falls below negative value compared to USD and EUR market.
~~

Bullshit in the first line so we don't even have to read on to see what the hell he is talking about.
here are the so called negative values in CNY:
OKCoin:   4,825 CNY =    714.28 USD
BTCC:    4,815 CNY =    712.81 USD
Huobi   4,821 CNY =    713.73 USD

and by the way these three exchanges have 2,549,523,000 USD combined volume in the last 24 hours alone with their prices even higher than USD markets.

Yes actually price have already got effected due to fud few days ago and no any traders with little bit of common sense gonna fall into same FUD again and again. Market have already reacted on fud due to panic traders and now whales seem to getting ready to start another big pump wave.

USD/CNY =          6.7565
OKCoin:   4,721 CNY =    698.73 USD
BTCC:    4,718 CNY =    698.29 USD
Huobi   4,722 CNY =       698.88 USD
Bitfinex =             702.85
Coinbase =             705.95

used to be +$20/+$40 premium price dropped to -$2/-$10 negative compare to usd eur market.

[chaser151]

BTC-E                       $696.2
BITSTAMP                  $703.74
Bitfinex                      $706.62
Coinbase                    $709.1
HuoBi 4747.88             $702.66094
OKCoin 4745.59           $702.32204
BTCTrade 4750.04       $702.98061
BTCC 4743.3               $701.98313

[yefi]

There are also quite a lot Chinese mainstream media reported about this warning including:
《参考消息》 As the Chinese government's official news agency - https://en.wikipedia.org/wiki/Reference_News
《新华网》 - https://en.wikipedia.org/wiki/Xinhua_News_Agency
人民日报旗下的《国际金融报》 - sub agency of https://en.wikipedia.org/wiki/People's_Daily

Care to show us where young grasshopper, because I looked at Xinhua's site and there's no mention of this?

[chaser151]

There are also quite a lot Chinese mainstream media reported about this warning including:
《参考消息》 As the Chinese government's official news agency - https://en.wikipedia.org/wiki/Reference_News
《新华网》 - https://en.wikipedia.org/wiki/Xinhua_News_Agency
人民日报旗下的《国际金融报》 - sub agency of https://en.wikipedia.org/wiki/People's_Daily

Care to show us where young grasshopper, because I looked at Xinhua's site and there's no mention of this?

only if you read my topic carefully.

[600watt]

Eventually this will suppress the price -but if people realize that this is their last occasion to buy bitcoins before the gov closed the exchanges - then this can result in a mega pump.

from china? if i were in that situation i'd be having a mega dump and walking away somewhere around right about now if something like this was a dead cert.

we've yet to see how a vibrant ish bitcoin scene would weather some type of government strangulation, and forget trying to block the protocol, all you gotta do to deter 99% of people is shut the exchanges, but i don't think many people are gonna stick around for a money that has no use to them.

You are missing the point that the Chinese want to move funds out of China - bitcoin is one avenue to work around the $50K annually limit. If it becomes obvious that this avenue is being to be closed - then people will flock to move their funds as quickly as possible.

how does one move funds "out of china" via bitcoin? chinese government wants your yuan to stay in china. it is called capital controls. if one buys bitcoin in china @ a chinese exchange the yuan do not leave china. the exchange has it now. it does not matter if you buy a ton of gold and bury it in your garden or if you buy a ton of bitcoin and bury them in the interwebs - no yuan is leaving the country.

[ImI]

They are citing the Bloomberg article as the source. But that article was pulled.

so its basically just an echo of the ZH induced fud that is now finding its way to chinese media

[BiTZeD]

Those guys at the Chinese government are just stupid... Their so precious Yuan that no one want are staying in the country, just getting from bank account to bank account...

[Shiroslullaby]

There is some serious FUD manipulation going on right now.
Do like Public Enemy says-
"Don't believe they hype!"

[ImI]

Eventually this will suppress the price -but if people realize that this is their last occasion to buy bitcoins before the gov closed the exchanges - then this can result in a mega pump.

from china? if i were in that situation i'd be having a mega dump and walking away somewhere around right about now if something like this was a dead cert.

we've yet to see how a vibrant ish bitcoin scene would weather some type of government strangulation, and forget trying to block the protocol, all you gotta do to deter 99% of people is shut the exchanges, but i don't think many people are gonna stick around for a money that has no use to them.

You are missing the point that the Chinese want to move funds out of China - bitcoin is one avenue to work around the $50K annually limit. If it becomes obvious that this avenue is being to be closed - then people will flock to move their funds as quickly as possible.

how does one move funds "out of china" via bitcoin? chinese government wants your yuan to stay in china. it is called capital controls. if one buys bitcoin in china @ a chinese exchange the yuan do not leave china. the exchange has it now. it does not matter if you buy a ton of gold and bury it in your garden or if you buy a ton of bitcoin and bury them in the interwebs - no yuan is leaving the country.

you misunderstand how their capitalcontrols are intended to work. they dont just want to hinder that yuan is leaving the country, they want to hinder the EXCHANGE of yuan to other currencies as it undermines their control of the exchange rate. they want to rule over the exchange rate between yuan/usd which is only possible if you forbid everyone to exchange apart from places where they are exactly determine the price.
so bitcoin does undermine this, albeit to a very very minor extent cause its peanuts compared to the overall capital flows.

[chaser151]

They are citing the Bloomberg article as the source. But that article was pulled.

so its basically just an echo of the ZH induced fud that is now finding its way to chinese media

Wrong. Chinese media report on specific bitcoin usage (e.g. single trade of bitcoin, 5m CNY flow out of the country, people using bitcoin to transfer their wealth outside of China etc..) of  bypassing the capital control. You can use google translate to read those Chinese news.

ZH quoted Bloomberg source, Bloomberg quoted Chinese source. Since it comes from Chinese gov & central bank's insider after all.

You will soon see Chinese authority's actions on okcoin,huobi,btcc and so on after all these "news" "leak rumors" aka "warning to their own citizen" are well delivered. Those mainstream media are ministry-level institution subordinate to the Chinese central government, they don't just report random junkies but carefully pick things that the gov want it to be out there. Calling this FUD only make you look like a fool.

[ImI]

You will soon see Chinese authority's actions after all these "news" "leak rumors" aka "warning to their own citizen".

you mean just like all the "authority's actions" we saw in 2013/14 after all those leak rumors?

[chaser151]

You will soon see Chinese authority's actions after all these "news" "leak rumors" aka "warning to their own citizen".

you mean just like all the "authority's actions" we saw in 2013/14 after all those leak rumors?

2013 China clear declared bitcoin is not a currency but a commodity.

On the central bank’s website the People's Bank of China said financial institutions and payment companies cannot give pricing in, buy and sell bitcoin or insure bitcoin-linked products. On 16 December it was speculated that the People's Bank of China had issued a new ban on third-party payment processors from doing business with bitcoin exchanges.

On 1 April 2014 China Central Bank ordered commercial banks and payment companies to close bitcoin trading accounts in two weeks.Trading bitcoins by individuals is legal in China.

And this makes bitcoin completely useless in China and you should be aware of it.
Currently Chinese exchangers are accepting deposits directly via bank wire which was not allowed back in 2013. Those exchangers got their companies bank accounts closed right after the 2013 statement. However they just opened many private personal bank accounts to receive trader's fiat deposit at few months ago. I think such act in violation of regulations will be used in their prosecutions later.

Now comes back to the China is actually beginning to enforce capital controls situation. guess what China gov/central bank will do on them?

[ImI]

You will soon see Chinese authority's actions after all these "news" "leak rumors" aka "warning to their own citizen".

you mean just like all the "authority's actions" we saw in 2013/14 after all those leak rumors?

2013 China clear declared bitcoin is not a currency but a commodity.

On the central bank’s website the People's Bank of China said financial institutions and payment companies cannot give pricing in, buy and sell bitcoin or insure bitcoin-linked products. On 16 December it was speculated that the People's Bank of China had issued a new ban on third-party payment processors from doing business with bitcoin exchanges.

On 1 April 2014 China Central Bank ordered commercial banks and payment companies to close bitcoin trading accounts in two weeks.Trading bitcoins by individuals is legal in China.

And this makes bitcoin completely useless in China and you should be aware of it.
Currently Chinese exchangers are accepting deposits directly via bank wire which was not allowed back in 2013. Those exchangers got their companies bank accounts closed right after the 2013 statement. However they just opened many private personal bank accounts to receive trader's fiat deposit at few months ago. I think such act in violation of regulations will be used in their prosecutions later.

Now comes back to the capital control things. guess what China will do on them?

you see the point is, there will be eventually some actions towards bitcoin from the chinese government. nevertheless this topic has been played out ad nauseam, so if it will happen OK, but dont expect anyone to start gettin hysterical about any rumors about it. that credibility is long gone.

additionally to that there exists some valid doubt if and how those "actions" would reflect the price. it could even have an opposite effect just like in venezuela where the government cracked down on bitcoin and even brought miners into jail but the weekly bitcoin volume goes through the roof anyhow.

its just a non-event and fud until actually something happens. any credibility in any kind of such rumors has been lost long time ago.

[chaser151]

You will soon see Chinese authority's actions after all these "news" "leak rumors" aka "warning to their own citizen".

you mean just like all the "authority's actions" we saw in 2013/14 after all those leak rumors?

2013 China clear declared bitcoin is not a currency but a commodity.

On the central bank’s website the People's Bank of China said financial institutions and payment companies cannot give pricing in, buy and sell bitcoin or insure bitcoin-linked products. On 16 December it was speculated that the People's Bank of China had issued a new ban on third-party payment processors from doing business with bitcoin exchanges.

On 1 April 2014 China Central Bank ordered commercial banks and payment companies to close bitcoin trading accounts in two weeks.Trading bitcoins by individuals is legal in China.

And this makes bitcoin completely useless in China and you should be aware of it.
Currently Chinese exchangers are accepting deposits directly via bank wire which was not allowed back in 2013. Those exchangers got their companies bank accounts closed right after the 2013 statement. However they just opened many private personal bank accounts to receive trader's fiat deposit at few months ago. I think such act in violation of regulations will be used in their prosecutions later.

Now comes back to the capital control things. guess what China will do on them?

you see the point is, there will be eventually some actions towards bitcoin from the chinese government. nevertheless this topic has been played out ad nauseam, so if it will happen OK, but dont expect anyone to start gettin hysterical about any rumors about it. that credibility is long gone.

additionally to that there exists some valid doubt if and how those "actions" would reflect the price. it could even have an opposite effect just like in venezuela where the government cracked down on bitcoin and even brought miners into jail but the weekly bitcoin volume goes through the roof anyhow.

its just a non-event and fud until actually something happens. any credibility in any kind of such rumors has been lost long time ago.

China is not venezuela.
over 85% hash power are located in China.
over 90% trading (fake or not) volume is in China.
Almost every (> 90%) pumping money come from Chinese.
You can't imagine what would it be like when that crackdown action happens. tips: much worse than the Vancouver's Housing Market lost Chinese pumping money overnight with huge sell-off waves.
Since the "warning" are already out, i guess it will happen really fast.

[ImI]

China is not venezuela.

no but a crackdown could be even harder to organize for them. chinese folks i had contact with told me their government sucks when it comes to actually manage this vast country, in good parts of it there is basically anarchy.

over 85% hash power are located in China.

no big deal. mining power is there cause of low electricity costs. if they go after miners, diff drops and miners in us, iceland, elsewhere get profitable. could even be a good thing as it would certainly mean less decentralization.

China is not venezuela.
over 90% trading (fake or not) volume is in China.

fake volume is just that: fake volume.

Almost every (> 90%) pumping money come from Chinese.

thats just an assumption. imo chinese exchanges follow western exchanges and not the other way around. but of course no one knows exactly what actual money flows are coming from china.

Since the "warning" are already out, i guess it will happen really fast.

i guess if save this thread and push it again in one year from now nothing of substance will have happend expect that your account will be abolished at that time. i have seen hundreds of those folks in my years in bitcoin, they die as fast as they pop up. otherwise you could have used your real account, but you didnt. why so? cause you are afraid of ruining your reputation with spreading stuff like that. thats why.

[600watt]

Eventually this will suppress the price -but if people realize that this is their last occasion to buy bitcoins before the gov closed the exchanges - then this can result in a mega pump.

from china? if i were in that situation i'd be having a mega dump and walking away somewhere around right about now if something like this was a dead cert.

we've yet to see how a vibrant ish bitcoin scene would weather some type of government strangulation, and forget trying to block the protocol, all you gotta do to deter 99% of people is shut the exchanges, but i don't think many people are gonna stick around for a money that has no use to them.

You are missing the point that the Chinese want to move funds out of China - bitcoin is one avenue to work around the $50K annually limit. If it becomes obvious that this avenue is being to be closed - then people will flock to move their funds as quickly as possible.

how does one move funds "out of china" via bitcoin? chinese government wants your yuan to stay in china. it is called capital controls. if one buys bitcoin in china @ a chinese exchange the yuan do not leave china. the exchange has it now. it does not matter if you buy a ton of gold and bury it in your garden or if you buy a ton of bitcoin and bury them in the interwebs - no yuan is leaving the country.

you misunderstand how their capitalcontrols are intended to work. they dont just want to hinder that yuan is leaving the country, they want to hinder the EXCHANGE of yuan to other currencies as it undermines their control of the exchange rate. they want to rule over the exchange rate between yuan/usd which is only possible if you forbid everyone to exchange apart from places where they are exactly determine the price.
so bitcoin does undermine this, albeit to a very very minor extent cause its peanuts compared to the overall capital flows.

are you suggesting that bitcoin purchases could possibly have a measurable effect on the value of yuan? a currency used by more than a billion people?

[ImI]

Eventually this will suppress the price -but if people realize that this is their last occasion to buy bitcoins before the gov closed the exchanges - then this can result in a mega pump.

from china? if i were in that situation i'd be having a mega dump and walking away somewhere around right about now if something like this was a dead cert.

we've yet to see how a vibrant ish bitcoin scene would weather some type of government strangulation, and forget trying to block the protocol, all you gotta do to deter 99% of people is shut the exchanges, but i don't think many people are gonna stick around for a money that has no use to them.

You are missing the point that the Chinese want to move funds out of China - bitcoin is one avenue to work around the $50K annually limit. If it becomes obvious that this avenue is being to be closed - then people will flock to move their funds as quickly as possible.

how does one move funds "out of china" via bitcoin? chinese government wants your yuan to stay in china. it is called capital controls. if one buys bitcoin in china @ a chinese exchange the yuan do not leave china. the exchange has it now. it does not matter if you buy a ton of gold and bury it in your garden or if you buy a ton of bitcoin and bury them in the interwebs - no yuan is leaving the country.

you misunderstand how their capitalcontrols are intended to work. they dont just want to hinder that yuan is leaving the country, they want to hinder the EXCHANGE of yuan to other currencies as it undermines their control of the exchange rate. they want to rule over the exchange rate between yuan/usd which is only possible if you forbid everyone to exchange apart from places where they are exactly determine the price.
so bitcoin does undermine this, albeit to a very very minor extent cause its peanuts compared to the overall capital flows.

are you suggesting that bitcoin purchases could possibly have a measurable effect on the value of yuan? a currency used by more than a billion people?

nope, and thats why the chinese government is not very keen about banning btc. until now there is simply no necessity.

the chin gov is keen about the exchange rate between yuan/usd thats all.

edit: like i said

albeit to a very very minor extent