Chinese authorities warn about the risk of speculating on BTC

[zby]

I see this being removed from this forum - but it is an important news, even though not as important as it was made at the initial reports.

http://shanghai.pbc.gov.cn/fzhshanghai/113571/3230012/index.html

Google translation:

"""
The People's Bank of Shanghai headquarters, the Shanghai Municipal Finance Office joint relevant regulatory authorities met with the Shanghai Bitcoin trading platform is mainly responsible for
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The size of the small and medium - sized enterprises in Shanghai
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Recently, the People's Bank of Shanghai headquarters, the Shanghai Municipal Finance Office jointly with the relevant regulatory authorities met the bit currency trading platform, "Bitcoin China" is mainly responsible for understanding the platform operation, suggesting that the operation of the platform to ensure the stability of the local currency, The possible risks, requiring its strict accordance with the relevant laws and regulations, according to the law compliance business. Urged the platform in accordance with relevant laws and regulations to carry out self-examination and the corresponding clean-up and rectification.

According to the Notice of the China Insurance Regulatory Commission (CBRC) on Prevention of Bitcoin Risks, issued by China Banking Regulatory Commission of the Ministry of Industry and Information Technology of the People's Bank of China (YF [2013] No. 289), Bitcoin is a specific virtual commodity, Do not have the legal nature of the legal nature of coercion and coercion, does not have the same legal status with the currency, can not and should not be used as money in the market circulation. Institutions and individual investors should correctly view the virtual goods and virtual currency, rational investment, at their own risk, maintain their own property and establish the correct concept of money and investment ideas. (Finish)
"""

Update: Title updated to reflect the most recent translations and interpretations.

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[Lauda]

That's just a warning which does absolutely nothing. Basically the problem is with insane leveraging and whatnot, and that the exchanges need to 'self-regulate'. The reason for which it is being removed is because the Speculation section spammer is back and is now using this for their malicious purposes.
Tl;dr: No reason to worry and something like this was expected considering the price movement.

[zby]

When I read the translation posted on reddit: https://www.reddit.com/r/Bitcoin/comments/5mczaz/this_is_important_shanghai_pboc_has_warned_btcc/dc2mc5l/ it looks like this is maybe partially ass covering for the authorities - i.e. if it crashes please don't blame us, we warned you, partially at officials using public funds to play the market and partially at enforcing the laws.

[Hunyadi]

When I read the translation posted on reddit: https://www.reddit.com/r/Bitcoin/comments/5mczaz/this_is_important_shanghai_pboc_has_warned_btcc/dc2mc5l/ it looks like this is maybe partially ass covering for the authorities - i.e. if it crashes please don't blame us, we warned you, partially at officials using public funds to play the market and partially at enforcing the laws.

I hope/believe it's just that. Anyways, it's good "reason" to sell.

[European Central Bank]

sounds like every other 'ban' that turned out to be a central bank telling the people not to come crying to them if it all turns to shit. that's enough to get some juicy falls though. i think a panda farting would be enough when it comes to china.

[Biodom]

sounds like every other 'ban' that turned out to be a central bank telling the people not to come crying to them if it all turns to shit. that's enough to get some juicy falls though. i think a panda farting would be enough when it comes to china.

I am surprised that China's nomenklatura continues to mess around with an asset where they have a strong lead (both manufacturing and trading).
This might cause side effects that will be not beneficial to them.

[kwukduck]

I guess this pretty much guarantees we will visit $600 again.

[alyssa85]

I'm getting deja vu - this is exactly like the warnings issued in late 2013/early 2014 from the Chinese, which panicked everyone into selling. Maybe they're trying to jaw-bone people away from bitcoin.

[Tzupy]

I'm getting deja vu - this is exactly like the warnings issued in late 2013/early 2014 from the Chinese, which panicked everyone into selling. Maybe they're trying to jaw-bone people away from bitcoin.

Yeah, but remains to be seen if this will evolve into something worse, or not. Just now it was more about excessive leverage and long squeeze, than panic selling due to bad news.

[zby]

http://www.coindesk.com/chinas-central-bank-issues-warnings-major-bitcoin-exchanges/ - so now we have authoritative translation.

Sell the rumour, buy the news?

[zby]

"PBoc detail: exchanges cant do offline promotion; no fake trade; Devaluation cant be mentioned; mandatory strong KYC "

https://twitter.com/cnLedger/status/817550313636798464