[2018-07-10] China Celebrates Killing Its Bitcoin Exchanges as CNY Volume Falls

[BitcoinArsenal]

The People’s Bank of China (PBOC) has declared victory over Bitcoin, stating that the market leader’s trading in its national currency has fallen to less than 1 percent of total global volume.
Full article on Bitcoinist

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[InvoKing]

The People’s Bank of China (PBOC) has declared victory over Bitcoin, stating that the market leader’s trading in its national currency has fallen to less than 1 percent of total global volume.

"Under the banner of anti-money laundering and scam-busting efforts" are the silliest reasons that can be stated...Fake volumes could be fixed easily along with the other reasons by imposing regulations. China lost its leadership and lost a huge amount of revenue/taxes...too bad..

[richardsNY]

Yawn. The PBOC has lost.

Just because China legally doesn't mean much for crypto anymore doesn't mean the other side of the market isn't active. The OTC market there is massive, where dozens of millions of Chinese citizens are participating in all types of economical activities related to crypto. I consider that a serious loss for the Chinese government because they can't do anything about it, and it keeps growing larger and larger. Maybe they should focus on that instead of cheering for something that shouldn't be cheered for....

[hatshepsut93]

The People’s Bank of China (PBOC) has declared victory over Bitcoin, stating that the market leader’s trading in its national currency has fallen to less than 1 percent of total global volume.

"Under the banner of anti-money laundering and scam-busting efforts" are the silliest reasons that can be stated...Fake volumes could be fixed easily along with the other reasons by imposing regulations. China lost its leadership and lost a huge amount of revenue/taxes...too bad..

I think the real reason is that China is scared of capital flight, which has been a problem for them for a long time. Imagine some Chinese millionaire converting a huge portion of his wealth into Bitcoin and then going on vacation to Europe, except he carries flash drives with his private keys, or tiny pieces of paper, or he just memorized his wallet seed  - if correctly prepared, it's impossible for border control to stop the movement of Bitcoins.

[darkangel11]

Great, they've managed to make all thriving crypto related businesses move abroad, taking their money and their taxes with them. It's like saying that making a client stop doing business with you is a victory. Sure, it is, if you're all about earning less money, be my guest. There will always be others.
Falling volume doesn't mean that your citizens aren't trading Bitcoin, you bank morons. It only means that they're using other currencies, the ones that you can't block.

[squatter]

The People’s Bank of China (PBOC) has declared victory over Bitcoin, stating that the market leader’s trading in its national currency has fallen to less than 1 percent of total global volume.

That's all they wanted -- for Chinese trading volume to move to Hong Kong/Japan? Maybe they've slowed down CNY-->BTC capital flight, but even that's doubtful. There's an assortment of shadow banks that Chinese residents could use instead, and I've always had a hard time believing the exchanges were very significant in that respect.

I think the real reason is that China is scared of capital flight, which has been a problem for them for a long time.

They must be worried about future bubbles to much higher prices. Seems like a drop in the bucket until then.

[InvoKing]

I think the real reason is that China is scared of capital flight, which has been a problem for them for a long time. Imagine some Chinese millionaire converting a huge portion of his wealth into Bitcoin and then going on vacation to Europe, except he carries flash drives with his private keys, or tiny pieces of paper, or he just memorized his wallet seed  - if correctly prepared, it's impossible for border control to stop the movement of Bitcoins.

It is one of the reasons for sure, but is it really effective? Banning Chinese currency trading with cryptocurrencies in Chinese exchanges might reduce this capital flight phenomenon but the money could always stay in China if managed correctly.
Chinese exchanges could use all cryptocurrencies + only 1 fiat which is the yuan then it will always stay in China and for customers they can later use a foreign exchanges to trade crypto with USD or Euro. Since China is a big mine, crypto will be always available in the exchanges which already have their business and they can allow trading fiat - crypto for foreign customers. It is a win-win strategy...

[stomachgrowls]

Great, they've managed to make all thriving crypto related businesses move abroad, taking their money and their taxes with them. It's like saying that making a client stop doing business with you is a victory. Sure, it is, if you're all about earning less money, be my guest. There will always be others.
Falling volume doesn't mean that your citizens aren't trading Bitcoin, you bank morons. It only means that they're using other currencies, the ones that you can't block.

Im sure they are quite aware on that fact but they do just let themselves like blind ones. 
They can restrict anything that they want but we do know on lots of possible ways that such restriction cant able to control out everything.

[gentlemand]

Ta ra, China. You brought us nothing but ball ache. Now if only you could wipe out all your miners we could move on into a better future.

I'm sure the real people there will be happily P2P and OTCing away from your gaze.

[figmentofmyass]

who knows what share of global volume china ever really had, anyway? so much fake wash volume; it's impossible to know. what i do know is that localbitcoins (and presumably other OTC channels) exploded in volume directly after the exchanges were shuttered: https://coin.dance/volume/localbitcoins/CNY

Ta ra, China. You brought us nothing but ball ache. Now if only you could wipe out all your miners we could move on into a better future.

doubt they could make much of a dent there. bitmain and other chinese miners have spent the last couple years distributing mines throughout the world, outside the reach of a chinese government crackdown. i don't think subsidized chinese electricity is in abundant supply anymore either. and if "chinese" pools control the hash power, it doesn't follow that all the mining hardware is in china.

i think the "chinese mining problem" has been over-hyped for years. bitmain is a threat. i don't think the government is a major threat to the network (unless in collusion with bitmain).

[gentlemand]

doubt they could make much of a dent there. bitmain and other chinese miners have spent the last couple years distributing mines throughout the world, outside the reach of a chinese government crackdown. i don't think subsidized chinese electricity is in abundant supply anymore either. and if "chinese" pools control the hash power, it doesn't follow that all the mining hardware is in china.

i think the "chinese mining problem" has been over-hyped for years. bitmain is a threat. i don't think the government is a major threat to the network (unless in collusion with bitmain).

I know. They're now well distributed elsewhere and will continue to diversify. I was just dreaming out loud.

It's less the Chinese mining problem and more the Bitmain problem. They're getting their hooks into every little corner of cryptoland now. There may come a point where they could throw in mining completely and still wield a vast amount of power.

[bbc.reporter]

Great, they've managed to make all thriving crypto related businesses move abroad, taking their money and their taxes with them. It's like saying that making a client stop doing business with you is a victory. Sure, it is, if you're all about earning less money, be my guest. There will always be others.
Falling volume doesn't mean that your citizens aren't trading Bitcoin, you bank morons. It only means that they're using other currencies, the ones that you can't block.

Also, they lost a very good opportunity to be the country that would have used bitcoin versus the USA as a leverage by demanding that bitcoin be the currency used in imports and exports. But what can they do if all they want to do is keep hoarding useless paper, the US dollar.

It fell on China's lap and would have been the leader in bitcoin's mining hardware production, mining, commerce and software development. But by killing it in their country, they have placed themselves in a position where they would play catch up versus other countries once again.