Bitcoin Price Crashes as Chinese Exchanges OkCoin & Huobi Pause Withdrawal

[Kprawn]

Rumors are that China is in the Midst of a Great Depression that will Rival the 1929 US version.

China is doing everything they can to prop up their Yuan, including blocking all outflows of capital from China.

So even when the Chinese exchanges do start allowing BTC & LTC to be withdrawn , expect their to be serious restrictions on those amounts.
(If they don't immediately reinstate a longer block not long after allowing them.)

China may start confiscating BTC from the exchanges and sell them to prop up the Yuan.
If they do , then we have to call BTC ,  BNTC instead.

BNTC = Better NOT Trust China

 

FYI:
On a trading note , A month is a long time, BTC value could easily drop in half before the blocks are lifted.

China won't confiscate btc from exchanges, it is a robbery, and exchanges have own cold and hot wallets, how they can confiscate the bitcoin funds? Impossible, if that will be real, PBOC is criming, government should fire the head of PBOC.

Do you think the Chinese government are even remotely worried about the rights of common people? The PBOC is busy with a power play, and

the Chinese exchanges are rolling over to stay in business. They have already made significant changes to please the government agents, and

it is still not enough. I think the PBOC is on a fishing expedition to hunt down "tax avoiders" and "money launderers" and to curb Capital flight.

[alyssa85]

Rumors are that China is in the Midst of a Great Depression that will Rival the 1929 US version.

China is doing everything they can to prop up their Yuan, including blocking all outflows of capital from China.

So even when the Chinese exchanges do start allowing BTC & LTC to be withdrawn , expect their to be serious restrictions on those amounts.
(If they don't immediately reinstate a longer block not long after allowing them.)

China may start confiscating BTC from the exchanges and sell them to prop up the Yuan.
If they do , then we have to call BTC ,  BNTC instead.

BNTC = Better NOT Trust China

 

FYI:
On a trading note , A month is a long time, BTC value could easily drop in half before the blocks are lifted.

China won't confiscate btc from exchanges, it is a robbery, and exchanges have own cold and hot wallets, how they can confiscate the bitcoin funds? Impossible, if that will be real, PBOC is criming, government should fire the head of PBOC.

Do you think the Chinese government are even remotely worried about the rights of common people? The PBOC is busy with a power play, and

the Chinese exchanges are rolling over to stay in business. They have already made significant changes to please the government agents, and

it is still not enough. I think the PBOC is on a fishing expedition to hunt down "tax avoiders" and "money launderers" and to curb Capital flight.

I would have thought that the people using bitcoin to evade Chinese capital controls were small fry. Most of the serious money uses property purchases abroad (they buy using a mortgage, and then take money slowly out of China to pay the mortgage, year on year).

Unless of course it is the miners who are getting their coins out of the country. They DO have a lot of money to take out that way. If they are shut down for capital flight, we have got trouble.

[zby]

...

China won't confiscate btc from exchanges, it is a robbery, and exchanges have own cold and hot wallets, how they can confiscate the bitcoin funds? Impossible, if that will be real, PBOC is criming, government should fire the head of PBOC.

PBOC is the government (or more precisely both are just subsidiary of the party). But yeah - they will not confiscate - they'll just allow moving the funds only between government approved wallets, this is the only way to stop BTC leaving the country and this is their goal announced already a few months ago. Next step will be controlling the Chinese miners.

...
I would have thought that the people using bitcoin to evade Chinese capital controls were small fry. Most of the serious money uses property purchases abroad (they buy using a mortgage, and then take money slowly out of China to pay the mortgage, year on year).

Unless of course it is the miners who are getting their coins out of the country. They DO have a lot of money to take out that way. If they are shut down for capital flight, we have got trouble.

Chinese citizens can only move $50K yearly abroad - I don't think that there is an exception to paying mortgages - it would take 10 years to move half a million.

I guess some would move it slowly - but for most it would be more urgent now.

[alyssa85]

...

China won't confiscate btc from exchanges, it is a robbery, and exchanges have own cold and hot wallets, how they can confiscate the bitcoin funds? Impossible, if that will be real, PBOC is criming, government should fire the head of PBOC.

PBOC is the government (or more precisely both are just subsidiary of the party). But yeah - they will not confiscate - they'll just allow moving the funds only between government approved wallets, this is the only way to stop BTC leaving the country and this is their goal announced already a few months ago. Next step will be controlling the Chinese miners.

...
I would have thought that the people using bitcoin to evade Chinese capital controls were small fry. Most of the serious money uses property purchases abroad (they buy using a mortgage, and then take money slowly out of China to pay the mortgage, year on year).

Unless of course it is the miners who are getting their coins out of the country. They DO have a lot of money to take out that way. If they are shut down for capital flight, we have got trouble.

Chinese citizens can only move $50K yearly abroad - I don't think that there is an exception to paying mortgages - it would take 10 years to move half a million.

I guess some would move it slowly - but for most it would be more urgent now.

Remember that property values in the west are going up. So if you buy a huge house and take out a 25 year mortgage, using your $50,000 allowance to pay the mortgage is easy. If the property price goes up, then you can sell it, and you have a capital gain as well, and it will be outside China in dollars or pounds or Australian dollars. Ditto if you rent the property out, you get rental income, and again it will be outside China. Buying property is a very good way to accumulate money outside China.

[ArdiPrabowo]

...

China won't confiscate btc from exchanges, it is a robbery, and exchanges have own cold and hot wallets, how they can confiscate the bitcoin funds? Impossible, if that will be real, PBOC is criming, government should fire the head of PBOC.

PBOC is the government (or more precisely both are just subsidiary of the party). But yeah - they will not confiscate - they'll just allow moving the funds only between government approved wallets, this is the only way to stop BTC leaving the country and this is their goal announced already a few months ago. Next step will be controlling the Chinese miners.

...
I would have thought that the people using bitcoin to evade Chinese capital controls were small fry. Most of the serious money uses property purchases abroad (they buy using a mortgage, and then take money slowly out of China to pay the mortgage, year on year).

Unless of course it is the miners who are getting their coins out of the country. They DO have a lot of money to take out that way. If they are shut down for capital flight, we have got trouble.

Chinese citizens can only move $50K yearly abroad - I don't think that there is an exception to paying mortgages - it would take 10 years to move half a million.

I guess some would move it slowly - but for most it would be more urgent now.

Remember that property values in the west are going up. So if you buy a huge house and take out a 25 year mortgage, using your $50,000 allowance to pay the mortgage is easy. If the property price goes up, then you can sell it, and you have a capital gain as well, and it will be outside China in dollars or pounds or Australian dollars. Ditto if you rent the property out, you get rental income, and again it will be outside China. Buying property is a very good way to accumulate money outside China.

volume transaction bitcoin user in china is very big not only 50k dollar
you can see last year about MMM global, you can see china member in there is big user and big investment use bitcoin, and MMM global scheme ponzy and not legal
and china exchanger is dominant too before investigation for china regulation

[deisik]

...

China won't confiscate btc from exchanges, it is a robbery, and exchanges have own cold and hot wallets, how they can confiscate the bitcoin funds? Impossible, if that will be real, PBOC is criming, government should fire the head of PBOC.

PBOC is the government (or more precisely both are just subsidiary of the party). But yeah - they will not confiscate - they'll just allow moving the funds only between government approved wallets, this is the only way to stop BTC leaving the country and this is their goal announced already a few months ago. Next step will be controlling the Chinese miners

What is the purpose of that?

And how exactly are they going to control the miners? The only thing that comes to my head right now is disallowing to move the mined coins anywhere but the Chinese exchanges. If so, we face the question of mining pools, i.e. if no one is allowed to withdraw their profits, pool miners from other countries (and most likely the Chinese miners as well) will leave and join other pools (outside China)