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

[BitcoinFX]

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.

- https://cointelegraph.com/news/chinas-digital-currency-is-ready-central-bank-says

- https://cointelegraph.com/news/chinas-state-run-media-bitcoin-is-blockchains-first-success

- https://cointelegraph.com/news/china-digital-currency-not-seeking-full-data-control-central-bank

or perhaps ... it was Blondie Wong, after all ...

- https://bitcointalk.org/index.php?topic=5165538.0

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[richardsNY]

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...

It's kinda difficult to figure out whether China has actually shut down 100 exchanges. We have to believe some lousy news portals reporting the matter. Moreover, the media tends to exaggerate figures to make them stand out more. It would not come as a surprise to me if the Chinese government shut down a few local exchanges but the number has been bumped by news portals to 100 for juicier click bait content.

[sikke]

I think what they mean by this is the cumulative exchange exits from 2017, which is the first time this news was announced.

Then it's not surprising because of the fact that a lot of exchanges have already voluntarily removed themselves from China, like Huobi, OKcoin, etc. that no longer operate within the Chinese jurisdiction but rather focus on global markets.

Perhaps there are more crackdowns this time, but honestly it's mostly FUD still.

[bitsurfer2014]

It's kinda difficult to figure out whether China has actually shut down 100 exchanges. We have to believe some lousy news portals reporting the matter.

People are getting tired of these kinds of news that I guess most of us often disregard it us a FUD but unfortunately, some people tend to overreact with it that they end up likely to panic!

On the contrary, even if that news was fake or not, I would rather support the idea that the news is true and I think it will be for the good of cryptosphere! In that aspect, I'm hoping that those exchanges would eventually relocate to safer grounds and continue their operation so that it can help in furthering the growth of the crypto industry.

I guess most of us are fed up with all these news coming all over from China which aren't helpful at all to the crytosphere!

[squatter]

It's kinda difficult to figure out whether China has actually shut down 100 exchanges. We have to believe some lousy news portals reporting the matter. Moreover, the media tends to exaggerate figures to make them stand out more. It would not come as a surprise to me if the Chinese government shut down a few local exchanges but the number has been bumped by news portals to 100 for juicier click bait content.

They're shutting down tiny exchanges like BISS with its 10 employees. Considering they are targeting such little fish, the numbers don't surprise me. All the big exchanges voluntarily obeyed the ban and left the country in 2017. Now the government appears to be enforcing the ban against all the little guys.

Supposedly, the exact number was 173.

[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.

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.

And what made you think that Russians and Filipinos are the ones hanging out in that board and not real Chinese people are posting in their own board? I guess there is a possibility of that especially when we have fake translators running around in the forum but for them to participate a board where they don't even know the language I just don't see it happening. But maybe you are right and using their local board to see if what exchanges are affected isn't a good thing especially when the translated topics are mostly not about exchanges in the first place.

[gentlemand]

And what made you think that Russians and Filipinos are the ones hanging out in that board and not real Chinese people are posting in their own board? I guess there is a possibility of that especially when we have fake translators running around in the forum but for them to participate a board where they don't even know the language I just don't see it happening. But maybe you are right and using their local board to see if what exchanges are affected isn't a good thing especially when the translated topics are mostly not about exchanges in the first place.

Because they enjoy filling the English sections with nonsense? I should've said non Chinese folks. As stated elsewhere in this thread this isn't the prime hangout for real Chinese Bitcoin fans which I forgot.

They're shutting down tiny exchanges like BISS with its 10 employees. Considering they are targeting such little fish, the numbers don't surprise me. All the big exchanges voluntarily obeyed the ban and left the country in 2017. Now the government appears to be enforcing the ban against all the little guys.

Supposedly, the exact number was 173.

Obviously they're going to know better than us what they can get away with but I'm surprised there were any at all.

[tracey77]

Oh boy... I'm so curious how will these shuts affect crypto market, what are your thoughts?

[mohdk52]

Apparently the government wants to be a monopoly in this industry in China.

[gentlemand]

Oh boy... I'm so curious how will these shuts affect crypto market, what are your thoughts?

No one outside wherever they're based has ever heard of them before this happened. It's not like the major exchanges being told to go away. This is house cleaning after the main act which was getting on for three years ago now.

[Ozero]

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

By banning all cryptocurrency exchanges, the Chinese government is preparing good conditions for the circulation of the CBDC's national stable coin. Therefore, unnecessary, even distant competitors are removed in this way. The issuance of its adjustable stable coin is also a good reason to take decisive steps in the fight against a decentralized cryptocurrency, to which the Chinese government has always been unfriendly.

[cr1776]

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.

Yeah, the number of times China has "banned bitcoin" or "shutdown the exchanges" is practically infinite.  It just seems like FUD.  It seems difficult to determine what is really going on, but if I were in Hong Kong, I would be buying bitcoin in order to protect myself from the authoritarians in power.

[figmentofmyass]

Yeah, the number of times China has "banned bitcoin" or "shutdown the exchanges" is practically infinite.  It just seems like FUD.

every time BTC speculation starts heating up among chinese investors, the government sends a message like this to the market. it's par for the course.

you could call it FUD but there is little uncertainty about it. they banned exchanges 2+ years ago. all they are doing is enforcing laws that everyone knew about. it's a lot like the war against unapproved VPN operators in china. it's a game of whack-a-mole that isn't going away.

[Carlton Banks]

anyone notice that this coincided with (slightly) more widespread reporting that several small Chinese banks were recently subject to runs on deposits, and subsequently nationalized? (which seems conceptually bizarre in China, how on earth do you open even a small bank without a huge amount of party political influence at operational and board levels?)

Looking at the overall picture, it's one of the Chinese state trying to hold the banking system together as it unravels, while simultaneously trying to squash anyone heading for any escape hatches (and Bitcoin isn't the only or necessarily the preferred method) Not that it seems like it's hitting panic territory especially, but more that the overall trend is picking up some momentum.

And I concur on the interest in comments from genuine Chinese people on these issues, but I expect they know (or fear) something we don't; what are the chances that simply getting caught talking about this stuff would buy you a lifetime residency getting tortured in some modern gulag for "spreading malicious rumors" or somesuch

[coolcoinz]

It's the first time that I hear about zycrypto.com and I'm browsing cryptocurrency pages every day.

Recently, China’s state-owned CCTV1 media channel showed a speech from President Jinping, which continued the pro-blockchain position but specifically dismissed cryptocurrencies as Ponzi.

No word about this being a speech from 2018.

100 crypto exchanges in China despite the ban? Sounds a little exaggerated. Most people probably didn't hear about 99 of them and their volume was so low that they weren't even listed anywhere. Oh, yes, listed. I'd like to see that, because anybody can come up with a number and everybody likes round numbers like 100. Maybe it was 10?

[bbc.reporter]

This report might be related. However, we do not know if Chinese exchanges based in Shanghai are using policy reasons for their safety or as an opportunity to exit scam hehehe.

I speculate more reports of lost CEOs coming soon.


In something seemingly out of a movie, the chief executive of IDAX, a lesser-known cryptocurrency trading platform purportedly in Shanghai, has disappeared off the face of the Earth. The exchange has since been in damage-control mode, trying to pick up the pieces of their crumbling platform.

On November 24th, IDAX revealed that it would no longer serve its Chinese clients due to “policy reasons,” but will continue serving users in “other countries.” This was a surprising announcement, for sure, but as the company asserted that it would maintain service for its clients in permitted regions, no one was all too concerned.

But in the day or two after the China-related announcement, reports started flooding Twitter and other social media platforms that IDAX had started to service lapses, specifically the exchange’s cryptocurrency withdrawal feature

A report from Chinese cryptocurrency media site “Blocklike” published on November 26th revealed that its sources said that Lei Guorong, CEO and founder of IDAX, had “run” due to the fact that the exchange was running a deficit.

Source https://blockonomi.com/idax-ceo-goes-missing-withdrawals-halted/

[bbc.reporter]

In related news, the government of China has given favor to some exchanges that they might reckon would bow to them and banned the exchanges they do not want hehehe. What is the technical term for this?


Huobi China has joined a state-backed blockchain alliance envisioned to be one of the most influential infrastructure services providers in the country.

The Chinese branch of Huobi Group announced its membership in the Blockchain-Based Services Network (BSN) Development Alliance at its launch on Sunday in Hangzhou of Southern China, the company told CoinDesk.

Led by State Information Center (SIC), a think tank affiliated with the National Development and Research Commision, China’s highest central planning agency, the network is planning to offer infrastructure services for any Chinese or international entity that uses blockchain.

Source https://finance.yahoo.com/amphtml/news/huobi-says-joining-chinese-government-193000687.html