Bitcoin future after China bans ICO and bitcoin to currency exchange, vice versa

[cybersofts]

Brief English explanation of the announcement: (I am not a good translator so correct me if necessary)

1. ICOs = illegal fundraising. Bitcoin and Ethereum are not currencies and should not be used as currencies in transactions.
2. No organizations and individuals are allowed to start ICOs, and ongoing ICOs should stop immediately with investments send back to investors.
3. (Important) No cryptocurrency exchanges are allowed to offer currency-to-"cryptocurrency" exchange any longer, a.k.a. e.g. no CNY-to-Bitcoin or Bitcoin-to-CNY exchange allowed.
4. Financial institutes that are not banks must not offer any related services.
5. Investors into ICOs must take full responsibility into their actions (that is to say, if you lose your assets through such "investment", no laws would protect you)
6. blah...

https://www.cnbc.com/2017/09/04/chinese-icos-china-bans-fundraising-through-initial-coin-offerings-report-says.html

https://www.reuters.com/article/us-china-finance-digital/china-bans-initial-coin-offerings-as-illegal-fundraising-idUSKCN1BF0R7

https://techcrunch.com/2017/09/04/chinas-central-bank-has-banned-icos

What do you think about the future of bitcoin? Share with us what you think, please?

[1714037541]

1714037541

[Affilate User]

Maybe china is afraid of losing competition in business, or maybe there is a hidden thing planned by china, but i will not sell my coins, i am sure there is something behind all this

[cybersofts]

Maybe china is afraid of losing competition in business, or maybe there is a hidden thing planned by china, but i will not sell my coins, i am sure there is something behind all this

My head was spinning for over two hours now when I first read this news. I'm afraid China is one of the biggest countries with higher number of investors in cryptocurrency world. If China is banning ICOs and bitcoin to currency exchange then we gonna have a serious problem. Sadly, without Chinese customers in cryptocurrency we are losing about 35% of bitcoin users.

[Maurtus]

I believe that this ban is just a temporary decision. Here's why:
1) There are lots of fraud activities in cryptocurrency at this moment and to be able to protect people from this fraud government should decide how to regulate this new industry.
Cryptocurrency industry scaling speed is way too fast at the moment and demands fast decisions.
On the other hand, China doesn't want to make fast decisions concerning market on which they really want to be a leader.
So this is just a "STOP, THINK, DECIDE" measure being implemented;
2) I think China also understands, that there is no way to be a leader on such digitalized and decentralized market with forbidding everything strategy.
On the contrary, as a government you have to make comfortable conditions including smart regulation measures for your industry leaders to be able to drive this market on local level, especially when your country is a huge part of it.

From my point of view these 2 reasons are enough to make a conclusion that this is a preventive measure and after China will decide what to do they will reform this ban into something much more flexible.
The problem is that by that time this measure will cause some damage and I'm hoping for some official statements in order to stabilize situation, at least I hope there are some industry lobbies in China.

[alyssa85]

Anyone who has been in cryptocurrency for a few years has seen these "china bans bitcoins/icos/whatever" stories over and over.

China is important, sure, but it is only one country, and most of the money pouring into cryptocurrency is coming from the west. So there will be panic selling, and then in a week or two people will have forgotten about it. The prospect of a fork in November is a bigger threat to bitcoin than China.

[iamTom123]

I believe that this ban is just a temporary decision. Here's why:
1) There are lots of fraud activities in cryptocurrency at this moment and to be able to protect people from this fraud government should decide how to regulate this new industry.
Cryptocurrency industry scaling speed is way too fast at the moment and demands fast decisions.
On the other hand, China doesn't want to make fast decisions concerning market on which they really want to be a leader.
So this is just a "STOP, THINK, DECIDE" measure being implemented;
2) I think China also understands, that there is no way to be a leader on such digitalized and decentralized market with forbidding everything strategy.
On the contrary, as a government you have to make comfortable conditions including smart regulation measures for your industry leaders to be able to drive this market on local level, especially when your country is a huge part of it.

From my point of view these 2 reasons are enough to make a conclusion that this is a preventive measure and after China will decide what to do they will reform this ban into something much more flexible.
The problem is that by that time this measure will cause some damage and I'm hoping for some official statements in order to stabilize situation, at least I hope there are some industry lobbies in China.

I am on the same opinion as you stated here. I am sure that soon China will come up with their stricter rules for ICO projects especially if the intended market is within China. for now, this news is sending some chills to many but after all the dust has settled we will know for sure the real picture of things.

In that summary posted above, there is no categorical statement that says Bitcoin is already illegal. Now, if Bitcoin cal already be illegal to hold in China then am wondering what will happen to the many miners based in the country?

Now, I am also wondering...is cryptocurrency designed to be independent of the government so why are we affected by this news...and from China at that? Or is this telling us the truth that we can never go away from the government and that government remains to be the King after all?

[MostHigh]

reading the news today is a bit worrying but the best it can do will make the price of BTC dip for sometime and recover. To my best of understanding, china is not saying BTC is not a legal tender but rather saying ICOs are causing a lot of problems so it must be stopped.

[LeGaulois]

Here we go again with China... Isn't this country that was behind a drama some months ago? Making Bitcoin bad but great again after a new? (which I don't remember). I am confident and in 2 weeks people will forgot already and the crypto market will come back yo what it was. Actually it's shopping time with great discount

[severaldetails]

I believe that this ban is just a temporary decision. Here's why:
1) There are lots of fraud activities in cryptocurrency at this moment and to be able to protect people from this fraud government should decide how to regulate this new industry.
Cryptocurrency industry scaling speed is way too fast at the moment and demands fast decisions.
On the other hand, China doesn't want to make fast decisions concerning market on which they really want to be a leader.
So this is just a "STOP, THINK, DECIDE" measure being implemented;
2) I think China also understands, that there is no way to be a leader on such digitalized and decentralized market with forbidding everything strategy.
On the contrary, as a government you have to make comfortable conditions including smart regulation measures for your industry leaders to be able to drive this market on local level, especially when your country is a huge part of it.

From my point of view these 2 reasons are enough to make a conclusion that this is a preventive measure and after China will decide what to do they will reform this ban into something much more flexible.
The problem is that by that time this measure will cause some damage and I'm hoping for some official statements in order to stabilize situation, at least I hope there are some industry lobbies in China.

I am on the same opinion as you stated here. I am sure that soon China will come up with their stricter rules for ICO projects especially if the intended market is within China. for now, this news is sending some chills to many but after all the dust has settled we will know for sure the real picture of things.

In that summary posted above, there is no categorical statement that says Bitcoin is already illegal. Now, if Bitcoin cal already be illegal to hold in China then am wondering what will happen to the many miners based in the country?

Now, I am also wondering...is cryptocurrency designed to be independent of the government so why are we affected by this news...and from China at that? Or is this telling us the truth that we can never go away from the government and that government remains to be the King after all?

I have read nowhere that China has any plans regarding bitcoin. It's all just about the fundraising with ICO.
At the stock market, there is a similar pattern: If there are bad news about one corporation it usually affects all the other corporations that are in the same business segment.
Although the others are perfectly doing fine.
I am sure we see something similar here.
By the way, I think the crypto world will benefit if an ICO can not work as it pleases anymore.
This will bring more trust and less disappointment into the world of crypto currencies.

[strohhirn]

I dont get why there are such a panic.
China just banned ICOs for some time, till they are able to regulate it.
Bitcoin is still mined and traded there.
But I dont want to complain: Sale time!

[Jason C.]

Just like the role of gold in economy, Bitcoin should play the role of Gold standard in cryptocurrency market, but not used in circulation.

[Devilcheg]

3. (Important) No cryptocurrency exchanges are allowed to offer currency-to-"cryptocurrency" exchange any longer, a.k.a. e.g. no CNY-to-Bitcoin or Bitcoin-to-CNY exchange allowed.

So the exchange scheme will be:
CNY->USD (or EUR)->BTC (bitcoin) and BTC (bitcoin)->USD (or EUR)->CNY

This was done on purpose, because a lot of capital was transferred from China to other countries.

[Affilate User]

Maybe china is afraid of losing competition in business, or maybe there is a hidden thing planned by china, but i will not sell my coins, i am sure there is something behind all this

My head was spinning for over two hours now when I first read this news. I'm afraid China is one of the biggest countries with higher number of investors in cryptocurrency world. If China is banning ICOs and bitcoin to currency exchange then we gonna have a serious problem. Sadly, without Chinese customers in cryptocurrency we are losing about 35% of bitcoin users.

You need not be afraid, china is not the only place of the biggest investor, european country can not lose with china.
I remain confident even though china prohibits bitcoin and ICO, it will not be a problem, nothing is impossible in the world of crypto

[Proteania Dev]

Nothing much will change. I think this is just one of those bleep on the radar. Bitcoin has shown itself to be very versatile and resilient. Confidence in the community is growing.

[pooya87]

here is my understanding of the situation:
Chinese government has never planned on banning bitcoin. specially not now that bitcoin is adopted worldwide. what they have always worried about like any other government in the world are the illegal activities that are being performed in disguise of bitcoin (and other cryptocurrency) related services.
things such as money laundering using bitcoin exchanges or ICOs. scamming people using ICOs. and when these things become bigger and take more victims, the government has to do something. so they banned ICOs for now. and as for bitcoin they have always worked with exchanges to regulate them to prevent all the illegal activities and this has nothing to do with "ban".