China’s Crypto Ban Surprisingly Effective

[Amyotocta]

China did not ban cryptocurrencies at all. They are one of the biggest players in the whole market. Chinese goverment supports chinese projects like NEO, VeChain and other. The only thing they banned were ICO's as far as I remember.

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[longyenthanh]

China did not ban cryptocurrencies at all. They are one of the biggest players in the whole market. Chinese goverment supports chinese projects like NEO, VeChain and other. The only thing they banned were ICO's as far as I remember.

It is like that but for me it is even impossible for China to make that big move cause it could just hit so many supporters who live in this country.

[gentlemand]

China did not ban cryptocurrencies at all. They are one of the biggest players in the whole market. Chinese goverment supports chinese projects like NEO, VeChain and other. The only thing they banned were ICO's as far as I remember.

Did you not notice the complete ban of centralised trading? No one can ban a cryptocurrency. They certainly can ban portals that allow interaction with fiat which is enough to deter enough people. P2P can't be stopped but they're not going to care all that much about the people who stick around no matter what.

[1Referee]

They certainly can ban portals that allow interaction with fiat which is enough to deter enough people.

Interesting is how the Chinese government is granting Huobi and OKEx enough room to remain operational in large parts of China. It seems that getting rid of the CNY trading pairs is enough to no longer be hit with harsh regulations. This could directly explain why these exchanges have managed to regain their dominant position in Asia and basically the entire world.

The only weird thing is how other exchanges are forced out almost entirely, but Huobi and OKEx not. I have been suspecting these exchange of having high ranked government officials in their board, and when they continue to be granted plenty of freedom over any other exchange, which is the case time on time again, it's no longer coincidence anymore. Perhaps this is China's way of 'taming' the market to a certain degree.

[SnowAugustine]

They certainly can ban portals that allow interaction with fiat which is enough to deter enough people.

Interesting is how the Chinese government is granting Huobi and OKEx enough room to remain operational in large parts of China. It seems that getting rid of the CNY trading pairs is enough to no longer be hit with harsh regulations. This could directly explain why these exchanges have managed to regain their dominant position in Asia and basically the entire world.

The only weird thing is how other exchanges are forced out almost entirely, but Huobi and OKEx not. I have been suspecting these exchange of having high ranked government officials in their board, and when they continue to be granted plenty of freedom over any other exchange, which is the case time on time again, it's no longer coincidence anymore. Perhaps this is China's way of 'taming' the market to a certain degree.

That just had me think for a moment, what about offshore yuan limitations? If China bans all other exchanges, then they're effectively limiting capital flight, aren't they? Because I thought each citizen has a limit for how much yuan they can exchange per year to prevent it all going out of the country into foreign property, gold, dollar, bitcoin, etc.

So if they're permitting a select few to operate, it means that they are letting their citizens use bitcoin, under certain circumstances. They'll probably collect additional tax on it or something.

[1Referee]

That just had me think for a moment, what about offshore yuan limitations? If China bans all other exchanges, then they're effectively limiting capital flight, aren't they? Because I thought each citizen has a limit for how much yuan they can exchange per year to prevent it all going out of the country into foreign property, gold, dollar, bitcoin, etc.

Technically there is an annual $50,000 limit to what people are able to move out of the country, but in reality due to various restrictions and how banks are instructed to work against foreign capital transfers, it's likely well under $10,000. People however don't necessarily need to transfer capital to foreign countries in order to buy into Bitcoin. It's pretty similar to how drugs get smuggled in the country. There are so called Bitcoin mules (mostly from neighbour countries) entering with Bitcoin and shortly after leave with cash.

So if they're permitting a select few to operate, it means that they are letting their citizens use bitcoin, under certain circumstances. They'll probably collect additional tax on it or something.

I don't think they collect tax since it's legally prohibited to use crypto in combination with fiat, but it would be great if someone from China could add some valuable input when it comes to why these exchanges are allowed to operate.