[2017/02/08] Breaking: Bitcoin Exchanges Held to ‘Closed-Door’ Meeting China’s

[bitlamp]

The People’s Bank of China, the country’s central bank, is continuing its involvement in looking into bitcoin exchanges’ activities in the country by holding a ‘closed-door’ meeting with domestic bitcoin exchanges.

According to a Bloomberg report, PBOC officials are meeting representatives from a number of regional bitcoin exchanges in a private meeting on Wednesday afternoon, local time.

The publication’s source points to money laundering as one of several topics on the agenda in the closed-doors meeting.

The PBOC has publicly revealed its involvement and several ‘on-site inspections’ for a little over a month now, when bitcoin prices reached gold parity and pushed toward an all-time high. Details are scarce, but today’s reported private meeting prolongs the PBOC’s involvement in wielding its authority as the country’s financial regulator at a time when capital outflows are at record highs in the face of a falling yuan.

The PBOC first announced that it had met representatives from BTCChina, Huobi and OKCoin, the three major bitcoin trading platforms in the country, on January 6th. The apex bank cited “abnormal price fluctuations” as a factor for its intervention while stating its intention “to guard against risks and maintain financial stability.”

Bitcoin fell nearly 4,000 CNY (approx. $300) as news and speculation of the PBOC’s involvement spread.

Within a week, the PBOC confirmed “on-site checks” of the three exchanges in Beijing and Shanghai, further accelerating bitcoin’s downward spiral at the time to strike a low of $790 that day, losing over 14% in value.

Soon after, the three exchanges quickly pulled the plug on margin trading for Chinese investors unofficially, before a formal announcement followed. On January 24th, the bitcoin exchanges began charging trading fees at a flat 0.2 percent per transaction to bring an end to zero-fee trading. Upon enforcement, bitcoin trading volumes saw a steep fall in the country.

Following today’s news, bitcoin prices were impacted minimally in China. Trading at BTCChina saw BTC/CNY reach a high of 7,545 CNY ($1096.85) for the day before falling to 7,150 CNY ($1,039.43). At the time of publishing, bitcoin price has since bounced back toward 7,350 CNY ($1,068) losing approximately 2.5% in value.

https://www.cryptocoinsnews.com/breaking-bitcoin-exchanges-held-closed-door-meeting-chinas-central-bank/

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[1Referee]

That explains the massive red candle earlier today at Chinese exchanges. At this point I can't see any more severe regulations being put to action when it comes to Chinese exchanges. I think it will give people confidence that these exchanges are subject to investigations as these exchanges weren't really trustworthy when it came to their volumes and massive amounts of manipulation across all major exchanges. I wouldn't be surprised if the PBOC is chasing down on the market movers a.k.a manipulators that were responsible for all the manipulation we have been experiencing in the last years.

[TraderTimm]

This just seems to be normal stuff to me. They have been meeting with the exchanges regularly, at least according to Bobby Lee of BTCC.

I'm sure they're interested in how to limit leverage and limit who can move money out of the services. They're not stupid, I'm sure they realize with the Yuan weakening back towards 7.0, Bitcoin could be used to shuttle worth out of the country.

I anticipate other countries to do the same as they finally understand the global nature of the Bitcoin network.

[richardsNY]

It's nothing new as it was announced that inspections/meet ups would continue. That's why I don't understand the over exaggerated dump that happened at the time news articles were hitting the net. It might also have been an attempt to trigger stop loss orders to create a flash dip. If that was the case, then it has not entirely worked out as they planned. At least it gave people a nice discount on their coins if they bought the dip.

[maku]

It's nothing new as it was announced that inspections/meet ups would continue. That's why I don't understand the over exaggerated dump that happened at the time news articles were hitting the net. It might also have been an attempt to trigger stop loss orders to create a flash dip. If that was the case, then it has not entirely worked out as they planned. At least it gave people a nice discount on their coins if they bought the dip.

It is always the same. Every negative news, even the most minor one will be exaggerated to the point of causing major FUD.
Situation wouldn't be be that strange if we see price collapse to below $800 level as a result.
I heard yesterday that Huobi denied some withdrawals for its users - I wonder if that has something to do with this.

[Papa Bear]

Soon after, the three exchanges quickly pulled the plug on margin trading for Chinese investors unofficially, before a formal announcement followed. On January 24th, the bitcoin exchanges began charging trading fees at a flat 0.2 percent per transaction to bring an end to zero-fee trading. Upon enforcement, bitcoin trading volumes saw a steep fall in the country.

[darkangel11]

Bitcoin fell nearly 4,000 CNY (approx. $300) as news and speculation of the PBOC’s involvement spread.

Always blaming Chinese bans... Bitcoin fell $300 because it just went up $400 in a week!
Nobody sees any coincidence? Every time there is a bubble like this one there will be a correction and the chinese audit was magically announced right after Bitcoin started getting close to ATH.

Also this article is, like many similar ones, telling the same story over and over again. We all know about the attitude of Chinese government and we are aware of the audits.

[TraderTimm]

Well, as I suspected, they saw how Bitcoin was being used to circumvent capital controls and have shut the party down. (For now...)

No way to "arb" this, so those funds will remain trapped if and when they get going again....

[Lionidas]

So they were forced to closed their doors? So what about the accounts that are held by them? DO they all lose their bitcoins in those exchanges accounts?
Sort of like a doomsday scenario for bitcoin it that does happen!
Just like what happened to Mt.Gox and Bitfinex after that but at a 10000x scale because of how much the Chinese have invested into bitcoin.

[wmabern]

From what I understand, the three exchanges have frozen withdrawals into foreign currency. You can still sell for Yuan. The freeze is supposed to last one month.
Not sure how that will impact the coin price in the coming days. Could be significant, maybe not. We shall see. Hmmmm 

[maydna]

From what I understand, the three exchanges have frozen withdrawals into foreign currency. You can still sell for Yuan. The freeze is supposed to last one month.
Not sure how that will impact the coin price in the coming days. Could be significant, maybe not. We shall see. Hmmmm 

beside that, i heard that we can only make one withdraw in once a month, but i don't know this is true or not. many people is expecting for 4000 yuan in the price and the price now is around and cycling in one range. last night, the price is come back with high price but suddenly the price is getting dump too deep, i don't know how much the price will reach in the bottom. i think now its our time to keep our bitcoin and waiting another moment, i am sure that the conditions will be back soon, this is just a matter of time before we can see the high price later.