[2019-11-26] China Shuts Over 100 Crypto Exchanges

[bbc.reporter]

I shake my head. Is this finally real or fud? I have not read any complaints from Chinese users about their coins locked in an exchange because they have abruptly exited from China.



China has been making very significant headlines for over a month now, with the government making several moves and pronouncements regarding cryptocurrency and blockchain technology in general. A very interesting one is, however, China’s decision to close down all digital currency exchanges in the country.

It is not news that while China is very much in support of blockchain technology, the country is quite averse to cryptocurrencies specifically, and has spent some time cracking down on the sector.

Now, it would seem like authorities have taken this crackdown a notch higher according to a recent tweet from a Chinese blockchain firm, CnLedger, which quoted a report from the People’s Bank of China (PBoC). The tweet said:

“Just in: ‘The 173 Chinese virtual-currency trading and token issuing platforms have all exited without risk”, from PBoC’s newly released China Financial Stability Report (2019).”

Read in full https://zycrypto.com/china-shuts-over-100-crypto-exchanges-is-bitcoin-on-the-verge-of-facing-more-woes/

[CryptoBry]

I believe that this news should have been a no-issue with the cryptocurrency market all because this is the official stand of the Chinese government since 2017, they don't want any cryptocurrency to take a root within its territory and business like exchanges are not allowed to operate, period! Good thing that the planned crackdown on Bitcoin mining has been postponed though there is still no guarantee that they will not eventually kick mining from their faces. Now, I do not understand why are putting on so much weight on China on cryptocurrency. This should have been OLD NEWS already because we already encountered this almost two years. Allowing china to pull down Bitcoin and the whole cryptocurrency market is a big insult to this industry and the many people who are believing and supporting Bitcoin.

[squatter]

I shake my head. Is this finally real or fud? I have not read any complaints from Chinese users about their coins locked in an exchange because they have abruptly exited from China.

These are probably just small, local exchanges. The big ones like Huobi and OKcoin left China long ago. BTCChina shut down. After the ban came into effect in 2017, most exchanges followed suit and traders went to the P2P and offshore markets.

[BitHodler]

Not sure if this is real or fud, but I do not even care much to be honest. I do not believe it has any impact on the price whatsoever because we initiated a downtrend weeks before this and some other fud crap news came out.

We have to be patient and let the market bleed until there are more buyers than sellers and we go up. Take every news you read about these days with a massive load of salt because this bad news is timed perfectly now we are going down.

[gentlemand]

I well remember Chinageddon in 2014. What amazed me about that was it was impossible to get any sense of what was actually going on. I don't think it ever arrived. There are however many tens or hundreds of thousands of Chinese users on this very forum and I don't recall any of the selfish pricks telling us a single thing.

I didn't know these 'local exchanges' existed. Or maybe they never did.

[Getmon]

Since when did China getting friendly to cryptocurrency exchanges? They were always against them. Their tune mellowed down for a while but they never released a statement that cryptocurrency exchanges are now allowed to start their business operations in the country. And is that accurate? Over 100 Crypto Exchanges is a big number. This might only be referring to tiny exchanges like the typical currency exchange in the street corner. Included in this number are also "token issuing platforms".

[Lucius]

I didn't know these 'local exchanges' existed. Or maybe they never did.

Exactly, someone has closed/forbidden something, but there is no information exactly what it is about. There may be some illegal exchanges, but it is not clear to me how they managed to survive after a complete ban on crypto trading. This whole situation with China is really confusing, one day we read about Binance returning to China, and their CEO is saying "BTC to $16 000 soon", and now China allegedly going into a total war against every possible way of crypto trading.

Maybe they're just clearing the way for legal trading, or we have a bunch of inaccurate information being posted for some reason.

[gentlemand]

Why? I don't understand why they do it.

Control of course. An authoritarian country will never allow its population the option of escaping into a form of value they can't influence. Their next step will be a government crypto which will massively increase their abilities for surveillance, oppression and the ability to see how their economy is operating.

[hatshepsut93]

Why? I don't understand why they do it.

We're speaking about the country that right now operates concentration camps for religious minorities, known for high amounts of censorship and brutal crackdown of any dissent. Is it really that surprising that they are against Bitcoin, the currency that was created to achieve freedom? Plus, the whole "China ban Bitcoin" thing has been going for years. I have no doubts that we will hear another "China unban Bitcoin" in the future, and then t will all repeat again and again.

[squatter]

I didn't know these 'local exchanges' existed. Or maybe they never did.

"Local" as in "small" and based mainly out of Shenzhen, Shanghai or Beijing from the look of things. Operations like BISS, run by a dozen people in Beijing. The big boys like Huobi immediately left the mainland in 2017, but these smaller operations apparently flew under the radar because there was no enforcement.

[NeuroticFish]

Indeed China is in the headlines again and I don't like it.
It's very difficult to find out what is real and what is FUD. I see they seem to try again a bit scale price manipulation through news.

[Harlot]

I've visited their local board here in the forum to see if there are some noise about the issue and so far I don't see any topics related to exchanges being shut down (either big or small) so my guess are this news about China is either fake or if it's real we are only talking about small exchanges here that's not even the main exchange of the Chinese people. You can check out their local board for yourselves and quickly translate it to English by right-clicking and then click "translate to English" to see what their topics.

[gentlemand]

I've visited their local board here in the forum to see if there are some noise about the issue and so far I don't see any topics related to exchanges being shut down (either big or small) so my guess are this news about China is either fake or if it's real we are only talking about small exchanges here that's not even the main exchange of the Chinese people. You can check out their local board for yourselves and quickly translate it to English by right-clicking and then click "translate to English" to see what their topics.

Or maybe everyone on that board is a Russian or Filipino using Google translate.

They're a bunch of unhelpful gits keeping us in the dark. I remember ONE Chinese person from there popping into other areas attempting to explain things in the past and that was it.

Buck up, Chinese folks.

[1Referee]

Indeed China is in the headlines again and I don't like it.

In general, whenever we see Chinese articles appear on every news site, it either means we're near a bottom, or have much further room to the down side left.

The market has never really done much based on news. At most it could drive the price up or down a bit in the shorter term, but zooming out, it's not making a difference. In the end, the charts tell the real story, and the charts indicate more room to the down side. Conservatively speaking, low $6000's is quite likely to happen before the end of the year, with or without China ruling the headlines.

[figmentofmyass]

They're a bunch of unhelpful gits keeping us in the dark. I remember ONE Chinese person from there popping into other areas attempting to explain things in the past and that was it.

Buck up, Chinese folks.

learn chinese and hit the 8btc forums. it ain't their job to explain everything to us ignorant white devils.

half joking, but seriously, that's where chinese bitcoiners actually post. i find that people on bitcointalk are pretty ignorant about the chinese bitcoin scene. you'll never get good info here.

[hello_good_sir]

I didn't know these 'local exchanges' existed. Or maybe they never did.

"Local" as in "small" and based mainly out of Shenzhen, Shanghai or Beijing from the look of things. Operations like BISS, run by a dozen people in Beijing. The big boys like Huobi immediately left the mainland in 2017, but these smaller operations apparently flew under the radar because there was no enforcement.

Hmhm. From personal experience, there are quite a lot of small exchanges that deal with a small range of crypto-currencies, as well as some fairly secretive OTC platforms (think of a Chinese Localbitcoins), these are likely the platforms taking the hits here.

Also, no one actually uses bitcointalk to post if they are Chinese, it has very low activity and it's not for the chinese people, and 8BTC is the place to go, and looking at the site it looks like there are a lack of people panicking about it... Weird.

[bbc.reporter]

I well remember Chinageddon in 2014. What amazed me about that was it was impossible to get any sense of what was actually going on. I don't think it ever arrived. There are however many tens or hundreds of thousands of Chinese users on this very forum and I don't recall any of the selfish pricks telling us a single thing.

I didn't know these 'local exchanges' existed. Or maybe they never did.

There might be nothing to tell hehehe. Also, it would only be fud if despite Chinageddon since 2014 and bitcoin went to $20k on 2017.

[gentlemand]

I'd say one of the key reasons for bitcoin to get into five figures was China pissing off.

Their zero fee bucket shops ran the show back in the day despite the reality being no one there but their volume bots and a couple of spotty teens.

[figmentofmyass]

I'd say one of the key reasons for bitcoin to get into five figures was China pissing off.

Their zero fee bucket shops ran the show back in the day despite the reality being no one there but their volume bots and a couple of spotty teens.

the chart makes it look that way. when the chinese government audited and later shut down the exchanges, the 2017 bubble took off in earnest. it may have been a coincidence though. an alternate theory is that the chinese government acted because of increasing speculation---speculation which ended up culminating in the run to $20k.

i don't buy this theory that no one was trading in china. i literally traded on huobi, okcoin.cn, and okcoin.com for several years and i'm from the USA. so did virtually every trader i know from 2015-16. those were the exchanges to trade on at the time.

just because they added fake volume doesn't mean they didn't still have more volume and liquidity than anywhere else. huobi and okcoin were the most liquid exchanges in the world at that time. the only people claiming otherwise are ignorant non-traders IMO.

[Slow death]

I don't know the names of these 100 exchanges, but the Chinese government is the kind of government that fulfills its threats, they are evil... who is the man  who challenges the Chinese government? I wonder how long it would take before the shadowy government of china began to pursue the miners of china?