Chinese-Based Exchange Ban Question

[abdulrayman]

Hi,

From my understand - On the 30th September, some chinese-based exchanges will stop CNY to Crypto trading and the rest will stop at the end of October.

Is there any reason of why Chinese Citizens will not be able to use Coinbase, BitStamp or any other site that allows chinese citizens to buy crypto with their CNY?

I would appreciate some input on this as I'm not fully aware of how Chinese banks work, whether they allow foreign payments....etc (e.g. in the UK I can pay for online goods in any currency, it simply converts it using the banks exchange rate - is this not the same in China?).

[mk4]

I'm not 100% sure if this is going to be the Chinese government's approach, but they will most likely add all international cryptocurrency exchanges to their great firewall. Same with what they did with Facebook, Google, etc. Also, China isn't supported by Coinbase along with alot of other countries. China can use VPNs and proxies for sites like Bittrex, but it will be pretty difficult for the Chinese people to convert their FIAT to crypto and vice versa.

[gentlemand]

Anything beyond the Chinese exchanges closing is guesswork at the moment.

There's one document that's been circulated extensively listing the foreign exchanges they intend to block with the Great Firewall, but there's no confirmation of that anywhere.

As the primary reason China is stopping these exchanges is their hatred of capital flight, I'd be surprised if they allowed bank transfers above a few thousand dollars out of the country.

I've never heard of Chinese citizens transferring fiat to Western exchanges as there's never been a reason before. As banks have been forbidden from having anything to do with crypto such transfers would be cancelled I presume.

[gabmen]

I'm not 100% sure if this is going to be the Chinese government's approach, but they will most likely add all international cryptocurrency exchanges to their great firewall. Same with what they did with Facebook, Google, etc. Also, China isn't supported by Coinbase along with alot of other countries. China can use VPNs and proxies for sites like Bittrex, but it will be pretty difficult for the Chinese people to convert their FIAT to crypto and vice versa.

Right. There would be a lot of ways to get around the firewall but the problem is how you'd invest money there in the first place. Sadly, the chinese is a big market for bitcoin and probably we'll see another dip once the targeted date nears

[gentlemand]

Right. There would be a lot of ways to get around the firewall but the problem is how you'd invest money there in the first place. Sadly, the chinese is a big market for bitcoin and probably we'll see another dip once the targeted date nears

I think we've already had our dip. Perhaps there'd be another modest one if they ban OTC stuff and block international stuff, but the vast majority of damage has already been done.

The Chinese market is already irrelevant and it's slowly dwindling away to nothing.

[abdulrayman]

I personally think China won't resort to blocking foreign exchanges (via their great firewall), I believe if it's something they intend to do, they would have done it by now - if anything, it would have been one of the first things that they would've done (and I'd say they would give their citizens a chance to take their crypto's out of there before immediately banning foreign exchanges). I also don't see any reason why they would unless they're going to make it illegal for a Chinese citizen to buy Crypto with CNY (which they haven't as far as I know). We have to remember, the bans are currently on Chinese ICO's and Chinese Exchanges. Yes, there is a document circulating about them banning mining and foreign exchanges (in the same document), but it's most likely a fake (whether it could happen or not is a different question).

Putting aside of what they plan on doing ... let's assume they don't ban foreign exchanges (yet, or ever). Is there any reason of why a Chinese citizen wouldn't be able to buy crypto's from a foreign exchange (USD/EUR/GBP...etc)? Again, I'm not really sure how Chinese banks work when purchasing anything online in a different currency, I assume it's no different to the UK where if I pay for something in USD, the bank will just convert it using their rates and charge a foreign transaction fee.

[buwaytress]

Putting aside of what they plan on doing ... let's assume they don't ban foreign exchanges (yet, or ever). Is there any reason of why a Chinese citizen wouldn't be able to buy crypto's from a foreign exchange (USD/EUR/GBP...etc)? Again, I'm not really sure how Chinese banks work when purchasing anything online in a different currency, I assume it's no different to the UK where if I pay for something in USD, the bank will just convert it using their rates and charge a foreign transaction fee.

That's the thing isn't it? If China really wanted to prevent citizens from exchanging their crypto to fiat, they'd have to go after (block, rather) all means of accessing exchanges operating outside their borders. You're right of course and Chinese banks work the same way. You give a person anywhere in the world your bank account and you get it in the account's currency, regardless of what currency it was sent in. The receiving bank is the one who decides if they can accept the payment currency, and then it's all converted at interbank rates. That's actually a major part of banking income.

China would not want to prevent this, since this makes it even easier for them to raise alerts at bank level if receiving money from abroad.

[jc01480]

Will the mining gear companies be next?

[Skarner21]

Putting aside of what they plan on doing ... let's assume they don't ban foreign exchanges (yet, or ever). Is there any reason of why a Chinese citizen wouldn't be able to buy crypto's from a foreign exchange (USD/EUR/GBP...etc)? Again, I'm not really sure how Chinese banks work when purchasing anything online in a different currency, I assume it's no different to the UK where if I pay for something in USD, the bank will just convert it using their rates and charge a foreign transaction fee.

That's the thing isn't it? If China really wanted to prevent citizens from exchanging their crypto to fiat, they'd have to go after (block, rather) all means of accessing exchanges operating outside their borders. You're right of course and Chinese banks work the same way. You give a person anywhere in the world your bank account and you get it in the account's currency, regardless of what currency it was sent in. The receiving bank is the one who decides if they can accept the payment currency, and then it's all converted at interbank rates. That's actually a major part of banking income.

China would not want to prevent this, since this makes it even easier for them to raise alerts at bank level if receiving money from abroad.

Looks like you quoted above thinking me that how about the OFW who living there or tourist also can be exchange there money into yen or why my mother can be still buy online even the sites only accepting usd they can be still exchange it online..
I was thinking that the all news are paid and fake they are just get the news until it getting trending and other bloggers and news site are also making their own post.
I think this is just a part of whales plan this is the same what happen before that is why the price of bitcoin is getting back down again instead of increase more..

[maku]

Do you remember some time ago when we had a trading blockade set by their government on Chinese exchanges?
At that time people's funds were frozen and withdrawing money has been stopped temporarily.
From what I read since that time, Chinese traders and crypto enthusiasts moved from exchange trading to p2p trading.
Most of them found Chinese exchanges to be a not reliable way to conduct trading operations anyway.

[btc_angela]

Will the mining gear companies be next?

I'm still thinking that mining business would be next. If they found out that anything that's very suspicious about who's behind the big mining farm or mining hardware industry, the hammer ban would follow. However, Charlie Lee, tweeted that mining farm or mining hardware would not be the target as of now. So let's see how will this evolved.

Do you remember some time ago when we had a trading blockade set by their government on Chinese exchanges?
At that time people's funds were frozen and withdrawing money has been stopped temporarily.
From what I read since that time, Chinese traders and crypto enthusiasts moved from exchange trading to p2p trading.
Most of them found Chinese exchanges to be a not reliable way to conduct trading operations anyway.

Yes, it's around Feb-March this year when PBoC stops the withdrawing of funds because they have doing investigation on the 0 fee and the fake volumes they are doing. So its not reliable, because the volumes are inflated artificially and they have found guilty and given a tighter regulations because of it.

[DaMut]

Will the mining gear companies be next?

I'm still thinking that mining business would be next. If they found out that anything that's very suspicious about who's behind the big mining farm or mining hardware industry, the hammer ban would follow. However, Charlie Lee, tweeted that mining farm or mining hardware would not be the target as of now. So let's see how will this evolved.

Actually i heard some issue that mining business will get infected too by them,
a day ago i received an email from cloud mining based on chinese,and eobot that they do not know what will happen with their service when chinese goverment banning people from using it or trade it.
which mean they got a clue about 'something' will happen in future for miners in the chinese.
yeah only time can tell us what will happen in the future.

every exhangers in the chinese will be close this month and they will put a great barrier in their firewall,
but it will not affecting the big fish to do the trade and only affecting a minority.
a month later on they will trying to find 'solution' and enable it again,
like they did a few months ago with their frozen withdrawal and else.
in my opinion,their statement about banning Bitcoin trading and Bitcoin exchanger to exist was a classsic move,
they did it multiple times before in a different way,
first they're banning ICOs,
afterward they're banning Bitcoin trading and exchanger,
why would they need to ban the ICOs ? while they can banning the Bitcoin directly?