Chinese Central Bank Requiring Extreme Customer Verifications at Exchanges

[cpfreeplz]

They have no choice. They're pretty much screwed. Maybe they should move somewhere democratic so they don't have to worry about all of this bullcrap. AML is one thing but writing our where you got your bitcoins!? How the hell will that work for millions of people? The exchanges will need to hire more people for all of the mandatory verifying.

[robelneo]

This will just create more awareness and curiosity and possible adoption to more chinese people,and besides they are used to this kind of restrictions,we all know china is not a democratic country,but they always find a way,we all know that how good the chinese are ..

[QuestionAuthority]

They're used to it. It won't have any effect at all.

Not all. I would like to think that a portion of the Chinese Bitcoiners are enlightened and know that they should stick it to their government in times that it is truly needed. Being a Bitcoiner could be one of those "sticking it to the government".

If it was possible, I believe foreign exchanges should start getting a good number of those Chinese traders. If Localbitcoin's numbers are up then that means there is a good market for foreign Bitcoin exchanges there.

I think they're all used to being shit on by their government, just like all murricans are used to bending over and letting the IRS rape them every April. No one is exempt.

I doubt any Chinese are trading bitcoin for philosophical reasons. Sure, they are trying to use bitcoin to hide money from the government but they aren't "sticking it to the govt". They're terrified of the government.

If you think about it, Bitcoin is the perfect medium for them to rattle the cage. The strict laws will subsidize BTC because of its disruptive nature. How is the volume of Localbitcoins over there. It must be rising by now.

Rattling the cage in China isn't the same as it is in the west.

Rattling the cage in the west:





Rattling the cage in China:

I believe you still underestimate what Bitcoin is. Bitcoin means they do not need to be on the streets and do a protest. Support for it is enough. Decentralization and censorship resistance through software is the new medium for resistance. We may only be scratching the surface.

I understand how bitcoin can be used in a perfect world. Yes, it could be revolutionary and take power away from central banks but that requires never involving fiat. That means trading bitcoin for goods and services and getting paid for your labor in bitcoin. A complete bitcoin economy isn't happening anywhere in the world.

I might be underestimating the Chinese ability to hide what their doing. I'll admit that. But I think you may be underestimating their fear factor and how much their citizens turn each other in to the government to save their own asses. The customer verifications that were put in place is their government's response to maintaining control.

[goldcoinminer]

That's what happens if the government will interfere, everyone is required to comply with the KYC and to avoid money laundering.
Being anonymous is not enjoyed anymore but I think it's acceptable as long as we are doing legitimate activities only.
They rule and we follow if we want to use exchanges to transact.

[JanpriX]

I believe the Chinese community is already used to this type of policies imposed to them by government. We shouldn't make a big issue about it because people will always make a solution to avoid these policies. They have been under close monitoring by their government for decades now and they just shrugged it off nowadays. Bitcoin will still thrive even if imposed with such rules. The bitcoin community in China will not back down just because of this.

[Kakmakr]

I believe the Chinese community is already used to this type of policies imposed to them by government. We shouldn't make a big issue about it because people will always make a solution to avoid these policies. They have been under close monitoring by their government for decades now and they just shrugged it off nowadays. Bitcoin will still thrive even if imposed with such rules. The bitcoin community in China will not back down just because of this.

They did not go down, they just went underground. If you look at the trading volumes on other platforms, you will see what I mean with this. Even if Bitcoin is banned in China, it does not necessarily mean that they cannot use their Bitcoin in other countries.

I will arrange a deal with someone in the west to "convert" my bitcoins to a local currency and then I will send that home or I will go there and have a holiday of my life!

[rajasumi3]

Well china is not a democratic country .so people are used to suffer like this and if the person has valid answers then what is the problem? Until and unless u are selling drugs or doing any illegal activities .well in india app we have to show our personal details while selling bitcoins.

[ebliever]

Here is some clarification of the news reported in the OP:

https://cointelegraph.com/news/bitcoin-exchange-funds-reporting-not-for-all-users-huobi

"Chinese Bitcoin exchange Huobi has clarified that requests for proof of origin and destination of funds “is just for users with potential money laundering risks.”"

[Wind_FURY]

They're used to it. It won't have any effect at all.

Not all. I would like to think that a portion of the Chinese Bitcoiners are enlightened and know that they should stick it to their government in times that it is truly needed. Being a Bitcoiner could be one of those "sticking it to the government".

If it was possible, I believe foreign exchanges should start getting a good number of those Chinese traders. If Localbitcoin's numbers are up then that means there is a good market for foreign Bitcoin exchanges there.

I think they're all used to being shit on by their government, just like all murricans are used to bending over and letting the IRS rape them every April. No one is exempt.

I doubt any Chinese are trading bitcoin for philosophical reasons. Sure, they are trying to use bitcoin to hide money from the government but they aren't "sticking it to the govt". They're terrified of the government.

If you think about it, Bitcoin is the perfect medium for them to rattle the cage. The strict laws will subsidize BTC because of its disruptive nature. How is the volume of Localbitcoins over there. It must be rising by now.

Rattling the cage in China isn't the same as it is in the west.

Rattling the cage in the west:





Rattling the cage in China:

I believe you still underestimate what Bitcoin is. Bitcoin means they do not need to be on the streets and do a protest. Support for it is enough. Decentralization and censorship resistance through software is the new medium for resistance. We may only be scratching the surface.

I understand how bitcoin can be used in a perfect world. Yes, it could be revolutionary and take power away from central banks but that requires never involving fiat. That means trading bitcoin for goods and services and getting paid for your labor in bitcoin. A complete bitcoin economy isn't happening anywhere in the world.

I might be underestimating the Chinese ability to hide what their doing. I'll admit that. But I think you may be underestimating their fear factor and how much their citizens turn each other in to the government to save their own asses. The customer verifications that were put in place is their government's response to maintaining control.

That is true. But I do believe strict rules and authoritarian government is the perfect place for Bitcoin to be used. There is also the "greed factor" among its users because its value could still go up. I was surprised that the PBOC did not penalize the Bitcoin exchanges. Maybe they know they could not stop it?

[QuestionAuthority]

They're used to it. It won't have any effect at all.

Not all. I would like to think that a portion of the Chinese Bitcoiners are enlightened and know that they should stick it to their government in times that it is truly needed. Being a Bitcoiner could be one of those "sticking it to the government".

If it was possible, I believe foreign exchanges should start getting a good number of those Chinese traders. If Localbitcoin's numbers are up then that means there is a good market for foreign Bitcoin exchanges there.

I think they're all used to being shit on by their government, just like all murricans are used to bending over and letting the IRS rape them every April. No one is exempt.

I doubt any Chinese are trading bitcoin for philosophical reasons. Sure, they are trying to use bitcoin to hide money from the government but they aren't "sticking it to the govt". They're terrified of the government.

If you think about it, Bitcoin is the perfect medium for them to rattle the cage. The strict laws will subsidize BTC because of its disruptive nature. How is the volume of Localbitcoins over there. It must be rising by now.

Rattling the cage in China isn't the same as it is in the west.

Rattling the cage in the west:





Rattling the cage in China:

I believe you still underestimate what Bitcoin is. Bitcoin means they do not need to be on the streets and do a protest. Support for it is enough. Decentralization and censorship resistance through software is the new medium for resistance. We may only be scratching the surface.

I understand how bitcoin can be used in a perfect world. Yes, it could be revolutionary and take power away from central banks but that requires never involving fiat. That means trading bitcoin for goods and services and getting paid for your labor in bitcoin. A complete bitcoin economy isn't happening anywhere in the world.

I might be underestimating the Chinese ability to hide what their doing. I'll admit that. But I think you may be underestimating their fear factor and how much their citizens turn each other in to the government to save their own asses. The customer verifications that were put in place is their government's response to maintaining control.

That is true. But I do believe strict rules and authoritarian government is the perfect place for Bitcoin to be used. There is also the "greed factor" among its users because its value could still go up. I was surprised that the PBOC did not penalize the Bitcoin exchanges. Maybe they know they could not stop it?

I hope it's because they know they cant stop it. The alternative is the government thinks they can use it to catch people. The US govt discovered that they can parse the blockchain for addresses and surveil people to match identities to addresses. That's one of the tactics they used to prosecute Ross Ulbrich. If the Chinese realize that, Bitcoin could be a great tool for them. That is why it's so very important not to reuse addresses and keep your identity private when using Bitcoin. I don't speak Chinese or I would search the Chinese section of the forum to see if they realize they can be trapped with bitcoin.

[Wind_FURY]

The Chinese can learn a lot from the dark market users in how to use Bitcoin properly. To think of it, not only the Chinese but also all of us for that matter. Bitcoin users should not forget its roots and should not sacrifice their privacy for a little show of legitimacy in eyes of the banks.

[ekoice]

https://news.bitcoin.com/chinese-central-bank-requiring-extreme-customer-verifications-at-exchanges/

I know we're talked about endless rumors and fake news of China "banning" bitcoin, but short of an absolute ban this sort of thing looks like a step in the direction we have long feared they would take. A big step.

The PBoC is apparently requiring every customer to write out how they got their bitcoin, among other things, such as explaining why they are withdrawing whenever they want to convert to fiat. Very, very intrusive stuff. The question is, how will Chinese buyers respond? Is this just business as usual when dealing with their government, or is this the sort of thing that will dry up the Chinese market for bitcoin? Or something in between?

PBOC just wants to stop its country's wealth being transformed via bitcoins to abroad.For that reason,they are asking customer verification at bitcoin exchanges.Let them do whatever they want.If the chinese gamblers and miners leave out of bitcoin community,it would be better for the bitcoin progress as a whole.

[Wind_FURY]

https://news.bitcoin.com/chinese-central-bank-requiring-extreme-customer-verifications-at-exchanges/

I know we're talked about endless rumors and fake news of China "banning" bitcoin, but short of an absolute ban this sort of thing looks like a step in the direction we have long feared they would take. A big step.

The PBoC is apparently requiring every customer to write out how they got their bitcoin, among other things, such as explaining why they are withdrawing whenever they want to convert to fiat. Very, very intrusive stuff. The question is, how will Chinese buyers respond? Is this just business as usual when dealing with their government, or is this the sort of thing that will dry up the Chinese market for bitcoin? Or something in between?

PBOC just wants to stop its country's wealth being transformed via bitcoins to abroad.For that reason,they are asking customer verification at bitcoin exchanges.Let them do whatever they want.If the chinese gamblers and miners leave out of bitcoin community,it would be better for the bitcoin progress as a whole.

Besides trading where do you think Bitcoin derives its value from? The Bitcoin economy is primarily comprised of the participants of the dark markets, gamblers, money launderers and other criminal enterprises. Cut them out of the whole thing and we have a useless cryptocurrency just like the altcoins.

[ebliever]

https://news.bitcoin.com/chinese-central-bank-requiring-extreme-customer-verifications-at-exchanges/

I know we're talked about endless rumors and fake news of China "banning" bitcoin, but short of an absolute ban this sort of thing looks like a step in the direction we have long feared they would take. A big step.

The PBoC is apparently requiring every customer to write out how they got their bitcoin, among other things, such as explaining why they are withdrawing whenever they want to convert to fiat. Very, very intrusive stuff. The question is, how will Chinese buyers respond? Is this just business as usual when dealing with their government, or is this the sort of thing that will dry up the Chinese market for bitcoin? Or something in between?

PBOC just wants to stop its country's wealth being transformed via bitcoins to abroad.For that reason,they are asking customer verification at bitcoin exchanges.Let them do whatever they want.If the chinese gamblers and miners leave out of bitcoin community,it would be better for the bitcoin progress as a whole.

Besides trading where do you think Bitcoin derives its value from? The Bitcoin economy is primarily comprised of the participants of the dark markets, gamblers, money launderers and other criminal enterprises. Cut them out of the whole thing and we have a useless cryptocurrency just like the altcoins.

What evidence do you have as to their preponderance?

I agree with the sentiment that bitcoin is being held back by criminals who use it. But I expect they are a minority, particularly from an economic standpoint. A thousand two-bit scammers don't possess the economic clout of a Barry Silbert or Cesare Wences (sp?), or the small army of geeks and libertarians that first embraced and continue to embrace bitcoin.

[chixka000]

This is not new to me anymore. Tho here in the philippines government is not requiring this kind of stuff however most of our exchanges are doing this KYC policy already so we don't have a choice but to verify our account in order for us to  convert our btc to fiat

[Wind_FURY]

https://news.bitcoin.com/chinese-central-bank-requiring-extreme-customer-verifications-at-exchanges/

I know we're talked about endless rumors and fake news of China "banning" bitcoin, but short of an absolute ban this sort of thing looks like a step in the direction we have long feared they would take. A big step.

The PBoC is apparently requiring every customer to write out how they got their bitcoin, among other things, such as explaining why they are withdrawing whenever they want to convert to fiat. Very, very intrusive stuff. The question is, how will Chinese buyers respond? Is this just business as usual when dealing with their government, or is this the sort of thing that will dry up the Chinese market for bitcoin? Or something in between?

PBOC just wants to stop its country's wealth being transformed via bitcoins to abroad.For that reason,they are asking customer verification at bitcoin exchanges.Let them do whatever they want.If the chinese gamblers and miners leave out of bitcoin community,it would be better for the bitcoin progress as a whole.

Besides trading where do you think Bitcoin derives its value from? The Bitcoin economy is primarily comprised of the participants of the dark markets, gamblers, money launderers and other criminal enterprises. Cut them out of the whole thing and we have a useless cryptocurrency just like the altcoins.

What evidence do you have as to their preponderance?

I read an article about the increasing rate of growth of the dark markets from the Deepdotweb website I think. I will try to remember and I will look for the article then post it here.

I want to see how much growth Bitcoin has that is used in buying legal items. Can you give me that information?

I agree with the sentiment that bitcoin is being held back by criminals who use it. But I expect they are a minority, particularly from an economic standpoint. A thousand two-bit scammers don't possess the economic clout of a Barry Silbert or Cesare Wences (sp?), or the small army of geeks and libertarians that first embraced and continue to embrace bitcoin.

I go back to the argument that Bitcoin is a decentralized, censorship resistant value transfer system. This is the perfect playground for criminals. I do not think it is being held back by the criminals but what it is doing is bring criminality leaping forward.

[Searing]

So lets say this passes....that means bitcoin can only be really used with exchanges in china locally...if at all...if you had to apply like at a bank in person.

thus China folk would have to do something outside of china around the china internet controls

thus likely china folk would not be a major factor in bitcoin anymore

seems to me it would be the first thing the china gov't would do to 'nip' bitcoin at the bud to suit their purposes

if above has any credibility (remember this is me saying this) ....what 350 usd BTC worldwide because 1/3 of folk in btc
are out of BTC and cash out and/or don't trade anymore?

I've no clue....but a law was just passed in USA in Hawaii that you must have all funds on hand to be a bitcoin exchange to cover all crypto exchanged

circle gone/ coinbase not allowed/ how do you get $$$ out of your crypto? shapeshift still works to move crypto around...but to cash out....back to wire xfer

thus have a buddy there who can only now (or soon) get btc via wire xfer etc

thus is it really that far fetched that china gov't coule hamstring china bircoin folk and cut off btc supply with bureaucracy...with this silly in preson law?

[Wind_FURY]

I do not think we will see a $350 per Bitcoin scenario. Not unless the network breaks because of a hard fork or some serious technical flaw if the Core developers decides to do the POW upgrade. There is too much at stake already. The whales involved will be the same ones who will save Bitcoin's price and not allow it to fall that low.