CHINA Banning bitcoin: PBOC Says All Crypto-Related Transactions Are Illegal

[fillippone]

Bloomberg news:

China banning bitcoin, again:

PBOC Says All Crypto-Related Transactions Are Illegal (1)
By Bloomberg News
(Bloomberg) --
The Chinese central bank says all cryptocurrency-related transactions are illegal, according to a Q&A statement on PBOC’s website about a joint government guidelines on cracking down on cryptocurrency trading and speculation risks.
Online crytocurrency services to Chinese clients by overseas exchanges are also illegal
It is an urgent task for China to root out crypto mining; the crackdown is important to meet carbon goals, according to the guidelines on website of the nation’s economic planning agency
Bitcoin dropped as much as 3.8% on the news; Ether also tumbled, along with crypto-related stocks
 

Filippone QuickTake:

• China banning bitcoin, again
• The less Bitcoin has to do with China, the better
• When something is useful and enacting freedom, immediately a dictatorial government will try to stop it
• This is going to be an historic error for China, as it was banning bitcoin mining
• If bitcoin wants to be the best and hardes Store of Value in history of mankind, then it has to withstand this kind of attacks
• Futures are not to blame here, as today expiry has already happened.

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[fillippone]

Apparently it is old news:


https://twitter.com/bigmagicdao/status/1441328777393426433

Announced on Sep 15th and posted online today.

[NeuroticFish]

Apparently it is old news:

It looks like an addition was made to the original (Sep 3) part.
The addition is:

The provision of services by overseas virtual currency exchanges to Chinese residents through the Internet is also an illegal financial activity.

I don't see this as a good reason for the dump. It's more like somebody released the FUD dogs because he got scared that Twitter moves from yesterday have the potential to make the price explode during the week-end.

[arwin100]

Apparently it is old news:


https://twitter.com/bigmagicdao/status/1441328777393426433

Announced on Sep 15th and posted online today.

Glad to see this clarification so that all holders assumptions will be cleared up and they will not take those fuds they try to spread right now, also this is reminder that we shouldn't get panic easily and verify the information spreading so that this will not cost us any amount for creating bad decisions towards that news. This also shows that whales are desperate to accumulate at more cheaper price so its good to kill their acts and make them feel that this time they will not succeed on what they are planning to do.

[dkbit98]

This all reminds me on those funny south park cartoon editing for Chinese ban of Bitcoin, but it is nothing more than standard weekend price manipulation.
Good thing about this is that power of Chinese fud is getting weaker and weaker every time, until the time when it will die totally.
https://www.youtube.com/watch?v=S3zlqHdmPQs

[stompix]

Apparently it is old news:

Announced on Sep 15th and posted online today.

It's from different institutions, that was a notice sent from the PBOC and this one is from China Securities Regulatory Commission to them , I don't know much about the steps laws and regulations have to pass in order to become enforceable in China but I think there is still a step since it's a law and it involves penalties and punishments within the justice system it must be approved by either the NPC or the State Council, neither one is either addressed or mentioned in both papers.

https://mp.weixin.qq.com/s/4QWsmCyksuDGQO8eKiixwA
http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4348521/index.html

That said we might see another wave of letters and yet no real enforcement in real life, as usual.

[fillippone]

In all fairness, I am a little bit less prone to dismiss this news as FUD.
Last time, when we read about China banning bitcoin mining, we were surprised when we discovered the news was actually true.
This time it might be the same thing.
Of course, this is going to be an epochal error for China, and also of course the blip in the price is absolutely irrelevant in the greater scheme of things.

[stompix]

In all fairness, I am a little bit less prone to dismiss this news as FUD.

It's an official document, there is nothing uncertain about it.
The uncertainty is if they will ever enforce it, that's where the doubts might be  

Last time, when we read about China banning bitcoin mining, we were surprised when we discovered the news was actually true.

About this, I think there are major differences between the mining ban and the cryptocurrency trading ban.

The ban on financial activities, usage etc, etc is understandable if we bring the digital yuan and the total control the CCP wants in the picture.
The mining ban I think was caused by different factors.

We had a mining accident back in April in Xinjiang, that caused a spiraling effect on coal production, then powerplants shut down and affected energy usage in all the region. Faced with that threat and combined with the economical war with Australia that has seen a coal import ban which has sent prices for coal skyrocketing and threatening other industries might have forced them to cut any non-essential industry or one that can be used as a weapon (like the steel one) from the power grid.

So this mining ban might not be directly targeted at crypto, unlike the trading one.
https://www.bloomberg.com/news/articles/2021-09-23/china-s-power-cuts-widen-amid-shortages-and-climate-push

In Zhejiang, about 160 energy-intensive companies in the textile, dyeing and chemical fiber industries have been ordered to halt production to meet energy consumption targets, Caixin reported. About 80% of the companies are in Ma’an, where a production halt order was issued from Sept. 21-30, the report said, citing an unnamed official.

So this notice might be just the product of a far more complex situation, where different measures that have not really been aimed at cryptos in general, all ended up hitting bitcoin and altcoins. Don't know how to react to this, the bright side might be that we finally see crypto becoming a thing of the global economy, with both good and bad implications coming with it.

[arwin100]

Also what more funnier here is our local media posted the fud on their social media channel without verifying the news, provably it could add up the fire but I'm sure people will get used to this news since there is clarification circulating so maybe we can expect that the dump happening right now is for short time only.





Hopefully the circulating post about another old Chinese fuds will clear out the minds of those people who get easily wiped by manipulators.

[dothebeats]

China banning bitcoin is basically old news. They've been doing this for years now, and there will come a time wherein the world will no longer react on what's happening in that country when it comes to cryptocurrencies. Sure this may well be another FUD, but PBOC has been firm on their stance for years re: bitcoin and crypto. It's just that they are not enforcing what they are saying, and all of these statements exist only as statements for the government doesn't really do anything to prevent transactions or the mining activities from happening in the country.

[killerfrost]

The market's obvious negative influence on bad news, I just feel that they have a contradiction in their actions. Perhaps in the near future we will receive some more bad news from them, another view of this FUD of China I think it is a collection move , I personally still have take a closer look at the present that the market is moving in a positive direction and news like this only adds to the challenge of confidence for many, and don't be too alarmed by these things.

[fillippone]

Not too much to fear, if we look at the price:


https://twitter.com/geenty/status/1441403448562388994?s=20

Even if it's true, it will be a problem for China, not for bitcoin, or for bitcoiners, even the Chinese ones.

[Hydrogen]

This appears to fit everything I said over the past 2 years about left wing politics being anti crypto.

With the demographic most likely to support bitcoin and cryptocurrencies being the political right.

I would be curious to know if the USSR had the same mentality of restricting innovation and progress that china does now. And whether that regressive mentality factored in to the USSR's economic implosion. They say history sometimes repeats itself, due to people being determined to never learn from it. Might it be accurate to say that china is USSR 2.0 and the conflict between it and the rest of the world resembles something like a sequel to the cold war?

Unfortunately, this announcement comes hot on the heels of south korea announcing tougher regulation and tax hikes on crypto. We need good news in the cryptosphere to negate the bad news.

[electronicash]

old news yet still affects the market even when china couldn't control crypto. 

don't you think the chinese had enjoyed this banning of cryptocurrency all the time, it makes them look very important to the industry when they could make users panic sell. such a bit loss from the cap every time they do this.

[CaptainCrapper]

This all reminds me on those funny south park cartoon editing for Chinese ban of Bitcoin, but it is nothing more than standard weekend price manipulation.
Good thing about this is that power of Chinese fud is getting weaker and weaker every time, until the time when it will die totally.
https://www.youtube.com/watch?v=S3zlqHdmPQs

Right after someday they are doing new drama all county when trying to accept it this time China trying to ban everything I cant understand this matter I have to study this subject.

[teosanru]

Bloomberg news:

China banning bitcoin, again:

PBOC Says All Crypto-Related Transactions Are Illegal (1)
By Bloomberg News
(Bloomberg) --
The Chinese central bank says all cryptocurrency-related transactions are illegal, according to a Q&A statement on PBOC’s website about a joint government guidelines on cracking down on cryptocurrency trading and speculation risks.
Online crytocurrency services to Chinese clients by overseas exchanges are also illegal
It is an urgent task for China to root out crypto mining; the crackdown is important to meet carbon goals, according to the guidelines on website of the nation’s economic planning agency
Bitcoin dropped as much as 3.8% on the news; Ether also tumbled, along with crypto-related stocks
 

Filippone QuickTake:

• China banning bitcoin, again
• The less Bitcoin has to do with China, the better
• When something is useful and enacting freedom, immediately a dictatorial government will try to stop it
• This is going to be an historic error for China, as it was banning bitcoin mining
• If bitcoin wants to be the best and hardes Store of Value in history of mankind, then it has to withstand this kind of attacks
• Futures are not to blame here, as today expiry has already happened.

Can we have one thread solely dedicated to keeping a count of China Banning bitcoin, I think it's maybe the 7th or 8th time maybe? I would really appreciate it if someone takes the honour and make a thread counting this. I would say this was just another news for Whales to accumulate even more BTC at this price because I have seen in the past that China banning BTC has led to many major pumps in the market within a few days. Bitcoin drops are really a normal thing and everyone now is used to such kinds of drops in the market, Bitcoin has been in the bearish mode for the last 10 days when this FUD wasn't even in the News, if you are blaming China is the reason for the drop then I think bicoin fell directly from 52k to 42k only because of China because Insiders would already have this news and would have sold their holdings.

[fillippone]

Can we have one thread solely dedicated to keeping a count of China Banning bitcoin, I think it's maybe the 7th or 8th time maybe? I would really appreciate it if someone takes the honour and make a thread counting this.

You are welcome:



https://twitter.com/DocumentingBTC/status/1441427718009016325?s=20

[JayJuanGee]

It probably does not hurt to have another thread on this ongoing China ban bitcoin dynamic.

• The less Bitcoin has to do with China, the better

Bitcoin gives no shits whether china ban bitcoin or not.... so I am a little worried about your statement of a preference in this matter, and surely we see that china seems to be having quite a few struggles in regards to how to deal with bitcoin.

Years back there may have been many uncertainties in regards to how much governments might be able to stifle bitcoin and its innovations, and surely the chinese government officials are not dummies, and surely that have all kinds of various smart technical and governmental people from whom they can attempt to draw knowledge, but still we witness them shooting themselves in the foot over and over and over, and they still conclude that they are right about this, and they just keep fighting bitcoin in very weird and seemingly draconian ways that seems to cause so many contradictions, including that even their citizens are confused as fuck about what they can do or not do and there remains a lot of lacking of harmony, even though it is quite likely that the Chinese officials are striving to achieve some kind of harmony that is not really possible to achieve with what seems to be their attempts to beat bitcoin down and have wars with bitcoin (and surely shitcoins too.. and I personally am not having as many problems with some of the potential needs to engage in some wars with some of the scamming smoke and mirror bullshit that goes on in some of the shitcoin space)...

I guess my overall point is that china is not getting rid of bitcoin and bitcoin is not getting rid of china, so it seems quasi-nonsensical to be hoping that bitcoin can just move on without china.. because it is not going to happen, even if china may well be causing their lil selfies to be having lesser of a role than what they otherwise would have been able to have if they had figured out some ways in which they might have been able to take some lesser adversarial approaches in their dealing with bitcoin, but hey I am no fucking chinese official, so of course, they have rights to attempt to accomplish objectives that they believe are best  for their own citizenry even though from an outside perspective it seems that they are contributing (or exacerbating) some of the problems that they purportedly are striving to fix.. not that outsiders are going to completely understand their total agenda, even if we might have some clues and try to study into the matter more, to the extent that it matters in terms of our ongoing interactions with china whether it is through bitcoin or other ways... whether we are wanting to travel their, deal with their citizens or even to do business with their citizens, and if they are currently claiming that outsiders cannot do business with Chinese citizens in bitcoin, some of that just seems as a lot of fucking overreaching and maybe going to bite them in the ass in terms of neither really being able to enforce it or having to result in selective enforcement.. which surely many governments engage in those kinds of practices too, especially when they create or maintain laws that are seeming to be greatly out of sync with what people are doing or what people want to do.

This appears to fit everything I said over the past 2 years about left wing politics being anti crypto.

With the demographic most likely to support bitcoin and cryptocurrencies being the political right.

I would be curious to know if the USSR had the same mentality of restricting innovation and progress that china does now. And whether that regressive mentality factored in to the USSR's economic implosion. They say history sometimes repeats itself, due to people being determined to never learn from it. Might it be accurate to say that china is USSR 2.0 and the conflict between it and the rest of the world resembles something like a sequel to the cold war?

Unfortunately, this announcement comes hot on the heels of south korea announcing tougher regulation and tax hikes on crypto. We need good news in the cryptosphere to negate the bad news.

I don't disagree with some of your overall points Hydrogen, except to the extent that you are striving to frame these matters in left/right frameworks or commie/capitalism bullshit.

Sure, there are a lot of anti-government folks in bitcoin, and there are people who have their very skewed views of what is too much government or what kinds of areas are o.k. for government intervention and whatnot, and in the end, bitcoin gives no shits... even while in the end, if there are various ways that governments are going to continue to exist (and of course they are), some governments are going to be able to more harmonize themselves with bitcoin and some of the sound money incentives of bitcoin, and some governments are going to have difficulties adapting.  It is going to take a decently long time for the various incentive systems to play themselves out, and perhaps even a couple of generations, even though bitcoin is having increasingly strong impacts, even now.  So, for sure, we know that some governments are panicking in regards to what to do about bitcoin and how to deal with it and to figure out if there are some balances that can be reached in terms of trying to deal with the actual dynamics of bitcoin including even basic shit like recognizing the difference between bitcoin and shitcoins and also trying to stay up-to-date with what is happening in bitcoin..

We do know that information spread is way more global, but also we have physical bodies too, so  the extent to which migration is going to happen into more friendly bitcoin jurisdictions is going to continue to be a phenomena that goes all over the place, including that even governments change who is in charge and also who is able to influence government policy directions change too.. I would not even assert that you are completely wrong in terms of attempting to frame some governments trying to be way more involved in seemingly social benefits areas, and they might end up having struggles in dealing with bitcoin differently than governments who might be less inclined towards providing social benefits, but I doubt that it is helpful to just lump governments into socialist or capitalists and try to presume from there in terms of if there might be more room for their being friendly rather than hostile to bitcoin.

[mu_enrico]

Oh man, CCP has done it (again).
So crypto transaction is illegal, and now what? They will arrest people if they transact using crypto?
The level of dictatorship there is unbelievable.

The more I read the news, the more I think this is price manipulation just to dump the market. The timing and the frequency are fishy.

[Haunebu]

Who the heck are the PBOC? Also, I stopped caring about what the Chinese government thinks about BTC and the crypto world ever since they made it clear that they want nothing to do with BTC a long time back.

History has proven the fact that no country(No matter how big it is) can successfully stop BTC or the crypto marker which is why this type of news is worthless and meaningless in my opinion.

I strongly believe that BTC will continue marching forward giving more and more power back to the people as time passes.