[2017/02/09] Chinese Central Bank Warns Bitcoin Exchanges, Again

[bitlamp]

In a public announcement today, the People’s Bank of China (PBOC) has revealed its warning toward 9 local bitcoin exchanges operating in the country.

Reports of a ‘closed-doors’ meeting surfaced yesterday, one wherein the PBOC was said to have met with representatives of Chinese bitcoin exchanges. While details were scarce at the time, the Beijing branch of China’s central bank has shed further light into the private meeting and its participants.

Having previously inspected and conducted on-site checks of Beijing-based exchanges Huobi and OkCoin, PBOC Beijing revealed that similar talks were held with the heads of 9 bitcoin exchanges.

The lesser-known trading platforms include CHBTC, BTCTrade, HaoBTC, Yunbi, Yuanbao, BTC100, Jubi, Bitbays and Dahonghou.

https://www.cryptocoinsnews.com/chinese-central-bank-warns-bitcoin-exchanges/

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[notthematrix]

The price will not gow lower guys!
Why 21.000.000 ever!
bitcoin can not be stoped....
https://twitter.com/TuurDemeester/status/829443083926282240
https://twitter.com/TuurDemeester/status/829449562855206912
https://www.youtube.com/watch?v=RRXecXfWARw
https://twitter.com/aantonop/status/829055554064637959
Bitcoin serves a need in a failing economic system.

[CloudStrife]

Could it be possible the Chinamen are using Bitcoin exchanges to launder money or get money out of their country? Capital controls in China could be strict over there.

Another topic to note. What would happen if decentralized exchanges become popular in use with the Chinamen?

Good question, in another thread I commented on the use of decentralized exchanges, it is possible that a lot of individuals will be encouraged to use this in the future. With regard to the intervention of the Chinese government, I think the positive side of this is that people will realize that governments are starting to recognize Bitcoin as a currency.

[RodeoX]

What do you mean governments are starting to recognize Bitcoin as a currency? They're starting to realize it as a threat to their national security is what it is. If you think BTC is going to become a legal currency, it's not. It's better that way.

I use bitcoin as legal currency all the time. Why I just bought a valentine present today, so I'm not sure what you mean?

[newIndia]

What do you mean governments are starting to recognize Bitcoin as a currency? They're starting to realize it as a threat to their national security is what it is. If you think BTC is going to become a legal currency, it's not. It's better that way.

I use bitcoin as legal currency all the time. Why I just bought a valentine present today, so I'm not sure what you mean?

Unfortunately, your use of bitcoin as legal currency does not make it legal. Government of a country must acknowledge it as legal tender for it to be counted as legal currency of that nation. So far, no country has done so. Hence, bitcoin is not legal currency anywhere on earth.

Though, it has been recognized as legal medium of exchange in many countries. So, as bitcoiner, it makes no difference to us.

[Gromozeka!]

Unfortunately, your use of bitcoin as legal currency does not make it legal. Government of a country must acknowledge it as legal tender for it to be counted as legal currency of that nation. So far, no country has done so. Hence, bitcoin is not legal currency anywhere on earth.

Though, it has been recognized as legal medium of exchange in many countries. So, as bitcoiner, it makes no difference to us.

According to recent reports in a few months, Japan officially recognizes Bitcoin legal tender. For Bitcoin is a big step forward, perhaps other countries will follow Japan in this direction.

[numismatist]

Could it be possible the Chinamen are using Bitcoin exchanges to launder money or get money out of their country? Capital controls in China could be strict over there.

Another topic to note. What would happen if decentralized exchanges become popular in use with the Chinamen?

Good question, in another thread I commented on the use of decentralized exchanges, it is possible that a lot of individuals will be encouraged to use this in the future. With regard to the intervention of the Chinese government, I think the positive side of this is that people will realize that governments are starting to recognize Bitcoin as a currency.

Those tend to be slow on transactions, since they are not based on an on-site & quick database that handles the matching for trades.
Would move Bitcoin into the same area of over-the-counter business like seen on gold bullion coin.

[notthematrix]

Could it be possible the Chinamen are using Bitcoin exchanges to launder money or get money out of their country? Capital controls in China could be strict over there.

Another topic to note. What would happen if decentralized exchanges become popular in use with the Chinamen?

Good question, in another thread I commented on the use of decentralized exchanges, it is possible that a lot of individuals will be encouraged to use this in the future. With regard to the intervention of the Chinese government, I think the positive side of this is that people will realize that governments are starting to recognize Bitcoin as a currency.

Those tend to be slow on transactions, since they are not based on an on-site & quick database that handles the matching for trades.
Would move Bitcoin into the same area of over-the-counter business like seen on gold bullion coin.

Fast transaction is only needed by a non backed currency as euro and $.
Bitcoin has a build in limitation of 21.000.000 , so all tricks like leveraged trade make no sense.
To me it looks like PBOC onlly want to stop non backed trading , so you need to own the real btc on the blockchain to trade.

(source) https://twitter.com/cnLedger

If you don't trade with  real btc's , you cant pay back if everybody demand its btcs!
and that is what you see.

 

[Carlton Banks]

Unfortunately, your use of bitcoin as legal currency does not make it legal. Government of a country must acknowledge it as legal tender for it to be counted as legal currency of that nation.

No. You clearly don't understand currency law or monetary theory.

Currency laws are typically written in terms of repayment of debts, not that the state-backed asset must be one half of every exchange. Think about it practically: how can any government enforce a law that forbids people to do barter trades? The definition of "Money" is really just "the good that is traded most commonly in barter trade".

Currency laws are in place to enforce the terms of debt contracts (i.e. loans). Nothing more.

[Idrisu]

Bitcoin and others cryptocurrencies will ever find it ways out of every limitations and control the people bank of china and others regulatory body from world want to place on it. Localbitcoin will definitely exploded as it best option for any attack from regulatory agency. This will be a lesson to others countries that will thing attack on an exchangers is attack on bitcoin.

[RodeoX]

What do you mean governments are starting to recognize Bitcoin as a currency? They're starting to realize it as a threat to their national security is what it is. If you think BTC is going to become a legal currency, it's not. It's better that way.

I use bitcoin as legal currency all the time. Why I just bought a valentine present today, so I'm not sure what you mean?

Unfortunately, your use of bitcoin as legal currency does not make it legal. Government of a country must acknowledge it as legal tender for it to be counted as legal currency of that nation. So far, no country has done so. Hence, bitcoin is not legal currency anywhere on earth.

Though, it has been recognized as legal medium of exchange in many countries. So, as bitcoiner, it makes no difference to us.

In the U.S. "legal tender" has a very specific meaning. Bitcoin is absolutely legal to use as currency. But to be legal tender means that a business MUST accept it for all debts. That is quite different than the question of it's status as a currency.