Chinese government just put any holder of Bitcoin in a super special 'follow' list - have fun trying to do anything remotely illegal with the gov watching your every step. They have also said Bitcoin can't be a currency and products/services can't be priced in Bitcoin (financial/payment industries at least, dont know if it applies to everyone).
So what does that leave behind? It's a 'digital commodity' with no intrinsic value. How useful!
Oh and this is just the beginning, China said it will keep a close eye on it and take further actions if necessary. If history is any indication with QQ coins, then its not looking good.
Bash away, I'm sure some will try to spin this as bullish for Bitcoin (oh wait, everyone already has).
Link?
Transaltion of the PR from
http://www.reddit.com/r/Bitcoin/comments/1s5hzl/my_human_translation_of_the_china_regulation/I've highlighted the points relating to my arguments below:
In order to protect the public's property rights, to protect RMB's official currency status, to prevent money laundering risk and to protect financial stability, the People's Bank of China, Ministry of Industry and Information Technology, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission jointly issued "The People's Bank of China, Ministry of Industry and Information Technology, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission Notice on preventing Bitcoin risk" (2013 no.289, "Notice" hereinafter)
The Notice clarify the status of Bitcoin. Bitcoin is not issued by a monetary authority, it does not have the status of legal tender and obliged payment status of money, it is not money in the true sense. Bitcoin is a specified virtual commodity, it does not have equal legal status with money, and it cannot and
should not be used as money on the market. But, the general public have the freedom to participate in Bitcoin trading as a commodity trading on the internet on the condition they carry their own risk.
The Notice requires, at this stage, all financial institutions and payment institutions
must not use Bitcoin to set price for product or services, not buy or sell Bitcoins, not act as a market maker for Bitcoins, not underwrite insurance related to Bitcoin or cover Bitcoin in insurance, not directly or indirectly supply other Bitcoin related services, including registering,trading, clearing, settlement;
not accept Bitcoin or use Bitcoin as payment tool; not start a Bitcoin and RMB or foreign currency exchange; not start a Bitcoin saving, trust or mortgage service; not issue Bitcoin related financial services; not use Bitcoin as the investment in trusts or funds.
The Notice requires, the Bitcoin websites that act as the main trading platform, should follow the Telecommunications Act and the Regulation on Internet Information Service, and register according to law. Also, because Bitcoin has a higher money laundering risk and the risk of being used by criminals, the Notice
requires the relevant organizations to comply with the Anti-Money Laundering Act and fully comply with the legally required anti-money laundering procedures like KYC and suspicious transaction reporting, to prevent Bitocin related money laundering risks.
To prevent virtual goods like Bitcoin using the name of "virtual money" to over-promote, damaging the public interest and the RMB's position as legal tender, the Notice requires financial organizations and payment organizations in their daily tasks to use the correct concept of money, to emphasize on public education about money, and to add to public financial knowledge education the contents of correct knowledge of money, correct views of virtual goods and virtual currency, rational investment, control of investment risk and defending one's financial safety, in order the public have correct views on money and investing.
In the future, the People's Bank will do its duty and
continue to closely monitor the Bitcoin trend and related risks.
