Reason for Today's Crash: China Bans Bitcoin Payment Processors

[cAPSLOCK]

Assuming it's true* that you can withdraw but not deposit to BTCChina, then why would a rational individual withdraw?  Whenever you have a one-way financial valve like this, it makes the less-restrictive money (money in BTCChina) worth more. 

I can understand selling in the panic to buy back later, but Yuan in BTCChina--if the rumour is true--is now better than Yuan in a bank account. 

It could become a zero way valve in a matter of hours. Simply state that BTC withdraws are forbidden also. Raid on their servers. Take the remaining bitcoins. End of story.

Poisonous for CN government.  Not gonna happen.

[ImI]

I am sick and tired of this "nobody knows what chinese do" thingy.
Fuck them all

yes but the good news is, that it looks like we may finally get clarity and that really is good cause nothing is as bad for some market as uncertainty

[DoomDumas]

Oh Yeah !!!

Buying cheap coin

[gentlemand]

Am I missing something here?

It's clear that banks and financial institutions are not allowed to deal in Bitcoin. They've also ruled that Bitcoin exchanges are legal and people can buy and sell them.

Sending money to an exchange from your Chinese bank account is surely classed as just another movement of cash. I assume a Chinese person can do a bank transfer to buy some garlic or gold in exactly the same way.

I've never used a third party payment system to buy Bitcoin in my entire life. Having investigated the sheer ball ache and sketchiness involved in doing so I'd actively avoid any exchange that required it.

I assume this is a move to keep closer tabs on the movement of money. Considering how China operates this shouldn't be surprising to anyone.

When I see a headline saying - 'All transfers from all sources are banned' is when I might start thinking it's over for China.

[Peter R]

Am I missing something here?

Sending money to an exchange from your Chinese bank account is surely classed as just another movement of cash. I assume a Chinese person can do a bank transfer to buy some garlic or gold in exactly the same way.

We are all missing something.  Here are the possibilities as I see them:

1.  All yuan transfers to BTCChina are banned.

2.  Only 3rd-party payment processor transfers are banned.  That is, you are still permitted to deposit and withdraw to/from BTCChina using your bank account.  (This change was made so that China could keep a better track of capital flows for AML purposes.)

3.  This is all FUD and nothing has changed.

[seleme]

I'm holding ... who needs China 

Exactly.

[emanymton]

I'm holding ... who needs China 

Exactly.

Looks like $1000 btc needed china...

[GigaCoin]

I'm holding ... who needs China 

Exactly.

China gave us Bitcoin $1250, fact can't be denied.

[gentlemand]

We are all missing something.  Here are the possibilities as I see them:

1.  All yuan transfers to BTCChina are banned.

2.  Only 3rd-party payment processor transfers are banned.  That is, you are still permitted to deposit and withdraw to/from BTCChina using your bank account.  (This change was made so that China could keep a better track of capital flows for AML purposes.)

3.  This is all FUD and nothing has changed.

I'm voting for number 2. Nowhere have I seen anything about banning all transfers in.

It's perfectly logical for the Chinese government to keep tabs on the movement of all money. They can do this by consolidating the channels it can move down.

Barring third party payments is an inevitable step in the course they've been taking. I don't see why anyone would be surprised by this. They're trying to keep it contained and tamed.

What they're doing is what all authorities would like to do. They're just not messing about.

[Satyre_Noir]

I'm ambivalent I bought my bitcoins long time ago and currently only speculate with altcoins just for fun, paranoia is not good for health just wait for clarification don't make wild guesses.

[emanymton]

I'm ambivalent I bought my bitcoins long time ago and currently only speculate with altcoins just for fun, paranoia is not good for health just wait for clarification don't make wild guesses.

He who panics first panics best 

[Satyre_Noir]

I'm ambivalent I bought my bitcoins long time ago and currently only speculate with altcoins just for fun, paranoia is not good for health just wait for clarification don't make wild guesses.

He who panics first panics best 

+1

[T.Stuart]

What's nuts is that we were trickling downwards today anyway. Then the China news a few hours ago. A few coins sold and "boing" up we go like we hit the bottom!  All those people with itchy trigger-fingers getting ready for the bottom of the trickle bought in early! Ironically the China news gave the price a new lease of life. Let's see where it goes.

[Ardenyham]

2.  Only 3rd-party payment processor transfers are banned.  That is, you are still permitted to deposit and withdraw to/from BTCChina using your bank account.  (This change was made so that China could keep a better track of capital flows for AML purposes.)

3.  This is all FUD and nothing has changed.

One of the two makes sence, especially the 3.
We would see some official statement if 2. happened I guess

[johnyj]

Chinese banks might get burned, if the only way to purchase bitcoin is cash purchase, then people have to withdraw money from banks to purchase bitcoin, and a mass scale of withdraw will create a bank run 

[Oldminer]

Holding like a boss

[pbody]

One thing people are discussing on here is the validity of the China news today. It seems likely that it is a false report. Everyone is panicking from the news of one reporter, who is interpreting one source.

[lindatess]

Just sold all my BTC!
Thanks for the advice.

[EverettMarm]

One thing people are discussing on here is the validity of the China news today. It seems likely that it is a false report. Everyone is panicking from the news of one reporter, who is interpreting one source.

According to this article: http://forexmagnates.com/china-bans-payment-firms-from-working-with-bitcoin-exchanges/

"Upon encountering these rumors on Chinese internet forums the financial newspaper “National Business Daily” contacted the PBOC and the leading third-party payment providers in China, Alipay and Tenpay, and they all confirmed the reports."

[Heutenamos]

One thing people are discussing on here is the validity of the China news today. It seems likely that it is a false report. Everyone is panicking from the news of one reporter, who is interpreting one source.

Anyway too late to sell I guess, so hold might be better