[2017-05-11]Chinese Bitcoin Exchanges Might Resume Withdrawals Next Month After

[kangageaf]

Chinese Bitcoin Exchanges Might Resume Withdrawals Next Month After Punitive Measures
The inspection of Chinese bitcoin exchanges by China’s Central Bank (PBoC) is coming to an end, according to reports by Chinese media. They have found the anti-money laundering measures used by the exchanges were inadequate and the exchanges engaged in fiat/btc loaning which is illegal.

Measures have already been drawn for punitive action against the exchanges which according to a rough translation appears to mean a monetary fine, although it is not currently known what punishment PBoC may order. They are now just going through the formalities, with a report to be published next month.

After the measures are undertaken, withdrawals can once more resume, but it’s not clear whether quotas may be maintained for Chinese citizens even after all the concerns are addressed.


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The above was revealed to Caixin, a Beijing-based media group providing financial and business news, by an unnamed source which suggests it was probably PBoC. They’ve probably decided to say something rather than just release the report because bitcoin has hit 10,000 Yuan, an all-time high and a very big number.

Will China Embrace the Digital Century?

China is currently undergoing a considerable transformation, especially in finance. They have leapfrogged the banking system, jumping straight to AliPay and WeChat Pay apps, whose founders employed the Silicon Valley mantra of move fast and let the regulators catch up.

The two apps account for the vast majority of transactions in the country, with PBoC seemingly trying to figure out how it can keep some control. Their adoption was so fast and widespread, it couldn’t really do much about it, so they are now thinking of joining the digital age with experiments of an ethereum based Yuan token.

But PBoC never liked bitcoin. It made it illegal for commerce use in 2014 and usually comes out to remind everyone they have a hammer whenever bitcoin’s price increases. They want to keep it under a lid, something small and a fringe thing.

The problem for them is bitcoin is global. The currency has shrugged off PBoC’s intervention in January which plunged trading volumes in China from some 90% to now 10%. It went on to double since then, reaching a market cap of nearly $30 billion.

In part perhaps because Japan might have seen an opportunity. They have joined Britain in treating bitcoin as a currency, but have gone a bit further, recognizing bitcoin as legal tender. That’s the very first country to do so and the act is incredibly symbolic as a nation willingly has shared the state’s ancient prerogative of issuing money with the free market.

Hundreds of thousands of shops will soon begin accepting bitcoin in Japan, with interest in the country growing, joined by South Korea, which suddenly is handling some amazing trading volumes for both bitcoin and ethereum.

The lesson here for China and other nations appears simple. You can’t stop the future, so why not join it? Look at London. They grabbed the opportunity in 2014, after New York gave them an opening, with the Chancellor symbolically buying a bitcoin and now they’re booming, especially in Fintech.

It seems Japan and South Korea may now be doing the same thing, diving heads on while perhaps not believing their luck at China willfully giving up what could be a transformational advantage in innovation.

The great manufacturer of the world seemingly doesn’t know what it has, nor, in some way does America with its very restrictive regulations. Both giants, instead of embracing an age of digitization, seem keen to gift it to competitors.

Needs one remind either of them that when Britain leaped by a boom in innovation we now call the industrial revolution, they became the empire where the sun never sets. Yet, perhaps we shouldn’t have expected any different nor need be surprised that it is once more the island nations of Britain and Japan which drive forward a new digital age.
https://www.cryptocoinsnews.com/chinese-bitcoin-exchanges-might-resume-withdrawals-next-month-punitive-measures/

[joshy23]

I personally don't know what will be the effect on bitcoin prices if ever Chinese enter the picture again. It has proven already that they used illegal ways to manipulate the price of bitcoin before. But one things for sure if ever they come back, they will no longer dominate the trading volumes, because Japan is already taking their spot and won't give up easily. I hope the Chinese exchanges or trading platforms have learn their lesson so that we won't see any fake volumes coming from them that resulted in some bitcoin price manipulation and the subsequent crash of the market.

[Kemarit]

They will still have a positive impact on the bitcoin market that's for sure. Chinese has fell in love with bitcoins and they will continue to do once the withdrawals are allowed by PBoC. Indeed, Japan is now he leader in terms of volume trading, but if the Chinese comes back they will surely go back to trading bitcoin again and we will see the two countries getting at it as to who will be the no. 1. I think they have learned there lesson well and will not do any fraudulent activity that will merit another suspension from PBoC.  The article mentioned about PBoC not liking bitcoin, but they can't never stop this revolution. They can only put tighter regulations on it, but can't completely shut it down for the Chinese people who are into bitcoins.

[Kprawn]

Chinese citizens has moved past exchanges, when they started person2person trades on the streets.    The Chinese government has seen that

this is much more complex that the previous centralized currencies they have shut down. The other thing is, Japanese people embraced Bitcoin

and this will grant them massive advantages over other nations. { tax income & tourism income } 

[richardsNY]

Chinese citizens has moved past exchanges, when they started person2person trades on the streets.   The Chinese government has seen that

this is much more complex that the previous centralized currencies they have shut down. The other thing is, Japanese people embraced Bitcoin

and this will grant them massive advantages over other nations. { tax income & tourism income }  

P2P trading has been booming in China after the PBOC forced through all kinds of ridiculous policies. Good thing here is that it will take a large number of coins off the exchanges, and thus will contribute towards a higher exchange price due to the lower overall availability of on exchange coins. Bitcoin is simply unstoppable. For that reason it makes no sense for China to walk such a wrong path. Japan is a great example of how things can be.

[Qartada]

Chinese citizens has moved past exchanges, when they started person2person trades on the streets.   The Chinese government has seen that

this is much more complex that the previous centralized currencies they have shut down. The other thing is, Japanese people embraced Bitcoin

and this will grant them massive advantages over other nations. { tax income & tourism income }  

P2P trading has been booming in China after the PBOC forced through all kinds of ridiculous policies. Good thing here is that it will take a large number of coins off the exchanges, and thus will contribute towards a higher exchange price due to the lower overall availability of on exchange coins. Bitcoin is simply unstoppable. For that reason it makes no sense for China to walk such a wrong path. Japan is a great example of how things can be.

Satoshi pointed out that it's easy for governments to shut down centralised networks like Napster, while peer-to-peer systems like Tor and Gnutella tend to stay online.  He's got a point.

The difference is that in order to influence centralised systems a government just has to say "do this or we'll ban you".

To influence decentralised systems, a government has to say "you and you and you and you and you and you and you and you..." and they can't get a majority to agree with changes that are bad when they can't force such a huge amount of people.

[darkangel11]

They sure took their sweet time with that audit.
They have found the anti-money laundering measures used by the exchanges were inadequate and the exchanges engaged in fiat/btc loaning which is illegal.

As far as the laundering is concerned it's going to continue. I wonder what measures are they intending to implement, because it looks to me like the exchanges are going to be a milk cow for the inspectors. They will get a fine and continue to operate, and in 6 months there will be another audit, same result and another fine. The exchanges can take the fines because they're earning a lot from trading fees and around it goes.