To Satisfy Soaring Bitcoin Demand, China's Exchanges Find A Loophole

[BADecker]

To Satisfy Soaring Bitcoin Demand, China's Exchanges Find A Loophole

But now that China's new president emperor has cemented his grip on power by installing political allies on the Politburo and successfully lobbying to have his name enshrined in China's Constitution, the exchanges are taking tenative steps to figure out if it's safe to do business in China again, and what constraints would apply to their operations going forward.

And while providing an online exchange for fiat-to-digital currency transactions is still expressly prohibited, a couple of the country's biggest exchanges are rolling out an OTC model that resembles the popular peer-to-peer bitcoin trading website Local Bitcoins, and which will "also support fiat currency transactions."

Here's CoinDesk:

Some of China's top bitcoin exchanges are now shifting to the over-the-counter (OTC) market in the wake of a crackdown by regulators in the country. In announcements made on Oct. 31, both OKEx and Huobi Pro said they will introduce peer-to-peer trading platforms that support fiat currency transactions, including the Chinese yuan, as an alternative for the country's domestic cryptocurrency investors.

Read more at http://www.zerohedge.com/news/2017-11-04/chinas-bitcoin-exchanges-are-shifting-otc-business-model.

[naf]

These are really good news!

[BADecker]

Actually, this news is mixed.

If the people of China free themselves up from their oppressive government, how will they treat the rest of the world? Bitcoin might go up to $500,000 per bitcoin when that happens, but will the resulting destruction of the fiat system be beneficial? Are we really ready for that? Is Bitcoin strong enough to take up the load?

[worldofcoins]

Actually, this news is mixed.

If the people of China free themselves up from their oppressive government, how will they treat the rest of the world? Bitcoin might go up to $500,000 per bitcoin when that happens, but will the resulting destruction of the fiat system be beneficial? Are we really ready for that? Is Bitcoin strong enough to take up the load?

OK wow you make some valid points there, but this is a great message to send all governments around the world.  We are tired of being controlled. To hell with the fiat system, and no I do not think we are ready yet, but the fiat system can handle it for now I am sure of it.  Freddie Mercury, "I want to break free"

[lzby2000]

The absolute OKEx made in China is undoubtedly good for the market. However, in China, now is the time to compare bitcoin supervision is very strict, to do such a thing, or a little worried that OKEx will not adhere to. In China, there must be government relations to do something well. I don't think OKEx will have a good future, because it's going in the opposite direction with the Chinese government.

[Flomo]

yes it needs to be done, closer the concept and investment module to the Chinese government. so there will be mutually beneficial relationships.

[rommelzkie]

All china government wants is to benefit from bitcoin

If this loophole is bad for china then they will close it immediately or vice versa. The government might support it that way.

[Qiuyue201]

All china government wants is to benefit from bitcoin

If this loophole is bad for china then they will close it immediately or vice versa. The government might support it that way.

Definitely, just get all the benefits, when it turn out to be threatening the government, they simply take it down, however this loophole is just a small hope for people in the china.
Still need to put an attention to what the government action after they found out this thing.

[squatz1]

Actually, this news is mixed.

If the people of China free themselves up from their oppressive government, how will they treat the rest of the world? Bitcoin might go up to $500,000 per bitcoin when that happens, but will the resulting destruction of the fiat system be beneficial? Are we really ready for that? Is Bitcoin strong enough to take up the load?

Agreed with it being mixed, though I don't agree with the price going up by an insane amount like 500k per bitcoin, that's a tad fucking bit absurd. But think of it like this, if China sees Bitcoin as a problem and people are trying to get around the laws set by China, isn't China just going to enforce their rules with more force and regulation? Yes, that's what they're going to do.

Then with this happens, they're going to get other countries on board with them. This isn't good for Bitcoin in the least, if the problem(s) stop at Bitcoin we'll be fine, but if it doesn't we're going to have a worldwide global issue.

[Pettuh4]

All china government wants is to benefit from bitcoin

If this loophole is bad for china then they will close it immediately or vice versa. The government might support it that way.

Definitely, just get all the benefits, when it turn out to be threatening the government, they simply take it down, however this loophole is just a small hope for people in the china.
Still need to put an attention to what the government action after they found out this thing.

Well it's up to the Chinese government to exploit this loophole but i doubt if they will succeed for that long because the market is also gradually skewing away from their control and becoming more balanced as many from around the world are investing in bitcoin.