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

[Anonylz]

The never ending China ban at it again, and what is even annoying is the way the market is reacting to the whole news, I mean people have lost count of the number of China ban on crypto out there, China are determine to ruin the market with bad news anytime things are about to get into action, anyways, it won't be forever, a time will come when no one will pay attention to them any more.

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[Gyfts]

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.

I'm a bit hesitant when it comes to China with their enforcement of their laws.

It's true China can't do anything to stop someone from sending a crypto transaction, but this is also a country that will throw you in jail if you criticize the government, so enforcement can occur on a whim if they feel the need that they're losing the crypto battle and want to prop up CNY. Give it enough time and they'll try to start enforcement, and we'll see if they end up being successful or not.

[Fortify]

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
 

People are overlooking the other big piece of news coming out of China now - the collapse of the biggest property company within China that has huge debts. Either one of two things is happening, or possibly a combination of both. Banning bitcoin puts a lot of news out there to distract from this massive company collapse that could ripple through the whole economy and send them into a recession. Secondly, a lot of people within authoritarian regimes are always looking to keep their money out of the hands of the central government that might confiscate it if they fall out of line or they're looking for convenient scapegoats at any time. This is an attempt to stop money fleeing the country in the simplest terms.

[Rikafip]

Same old same old, China banning Bitcoin. This sums it up





I remember back in old days ( for me that's 2013-2014) I used to worry about news like that, but now I caae t the point where I don't care about short term stuff like that as I am into this for a long run anyway.

[Twinkledoe]

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.

Once China sees that bitcoin/crypto is in great condition without them, I think, they will change their mind again. It has proven even without them, bitcoin will survive and other entities or countries are very much open arms with bitcoin. Maybe, it is better that China will not participate anymore in this market but this is unfortunate for all bitcoin miners in China. I hope they already find their new place to conduct their business.

[Issa56]

Again why is china having problem with bitcon they only thing China don't know is that they don't know the only thing they can do now is only to adopt bitcoin even if they continue to ban bitcoin, Bitcoin is really growing massively which I believe very soon China news won't even have any effect on bitcoin price again. I believe China just there currency to be the best and they don't want any currency that will beat there own that's why they are trying to kill bitcoin.

[GubiMixa1292]

China They have been doing this for years now and there will come a time when the world will no longer react to what is happening in that country when it comes to cryptocurrencies. Sure this could be another FUD, but the PBOC has been steadfast in their stance for years: bitcoin and crypto. I can say that this is just another news for Whale to accumulate even more BTC at this price as I have previously seen China ban BTC which led to many massive pumps in the market within a few days. . Bitcoin drops are indeed a normal thing and people are now used to these kinds of drops in the market. I don't care and am not surprised about these moves by China anymore.

[jaysabi]

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.

This isn't really unique to bitcoin.  The ccp is exerting increasing levels of control over all aspects of chinese society.  China has always been hostile to foreign tech companies operating in the country, but recently they've started harshly restricting even chinese-based tech companies and basically anything that could exert influence over the society and sap loyalty from the party, including video game makers, tv and movie studios companies and others.  At the core of the moves are promoting ultra-nationalist tendencies as china gears up to challenge the US globally.  With the implementation of the digital yuan, bitcoin is just another element that threatens the party's power because they can't control it.  But unlike the maximalists on these boards that claim it's censorship proof and the government can't stop it, I say just watch how few people are going to be out of compliance now that it's fully illegal.  

[fillippone]

[ But unlike the maximalists on these boards that claim it's censorship proof and the government can't stop it, I say just watch how few people are going to be out of compliance now that it's fully illegal.  

For sure, it will be an important testbed for everyone of us looking at China. How this story will evolve and the resilience of bitcoin there will be of utter importance.

[sukmo]

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.

Yes, you say, this news will certainly test the mentality of investors and cryto users in this world.
But this is a big challenge for the future development of cryptocurrencies.
As happened in 2018 when a lot of negative news about crypto was mainly in the case of hacking.
But we can see that cryptocurrencies are still growing and developing well to this day.

[bhooscream]

Apparently it is old news: -snip- Announced on Sep 15th and posted online today.

Thanks for your fast clarification, that makes people not assuming China tries another way to shake Bitcoin.
Anyway, I am curious why we saw some bad news about China banning crypto currently. I suspect a group of people take advantage of this situation, they use bad news from China to push people selling their Bitcoin at a cheap price. Look at the market condition and crypto price moves lately, seems a bit strange!!

[ultrloa]

Same old shit want to spread by those manipulators and only weak hands will gonna buy that shit and  look what happen unto those people who believe easily on unverified fuds spreading for sure they lose their money for dumping yesterday or even last few days. People need to learn to verify what information they are reading and also they need to strengthened there balls to hold if there's something like this since if they keep dumping when there's a fud came for sure they cannot gain from this.

Also time to accumulate once we see the dip almost end since that is the time whales accumulate.

[Oceat]

We might probably gonna have to face this news(again) in the future.

This news will keep on popping every now and then that makes me feel like I'm immune to their BS. It makes me think that most whales are living in China because they are known to making such fud news based on what I've noticed. And anyone who fall for their traps would feel sorry because they suddenly lost what they were supposed to be holding instead.

Well, we gotta ride this fud and buy the dip since only weak hands would fall for their traps.

[JayJuanGee]

Apparently it is old news: -snip- Announced on Sep 15th and posted online today.

Thanks for your fast clarification, that makes people not assuming China tries another way to shake Bitcoin.
Anyway, I am curious why we saw some bad news about China banning crypto currently. I suspect a group of people take advantage of this situation, they use bad news from China to push people selling their Bitcoin at a cheap price. Look at the market condition and crypto price moves lately, seems a bit strange!!

I don't know what you are talking about when you refer to the price of crypto - hardly makes any sense to employ such a vague reference in terms of talking about bitcoin prices.  If you are trying to analyze some kind of amorphous concept such as crypto, then of course, you are going to be able to find all kinds of strange stuff with such a meaningless conceptualization.

Surely, you must be wanting to refer to some phenomenon beyond bitcoin when you use the term crypto, but it does not mean anything when you try to lump a bunch of bullshit together and then somehow also tie it to bitcoin, and ultimately whatever you are talking about is vague when you use such term and you think about price performance in such a way, unless you specifically are talking about the price of bitcoin.. and if you are specifically talking about bitcoin, then focus on what is going on with bitcoin and use the word bitcoin to describe what you are talking about instead of using a vague nonsensical term.   

Regarding the price of bitcoin, it's recent performance does not seem strange at all to me.,. or at least, hardly at all.  Every 4-year price cycle that we have had so far, there have been various kinds of attempts to keep BTC's price down during the UPpity part of the cycle - and we seem to be in the midst of such UPpity part right now as I type this post, so even if there are various attempts to stop the Up portion from taking place or to stop it earlier than it would otherwise be going up, there is no real sign, at least not so far, that such efforts to stop the UP movement and up pressures early is successful or that such efforts are going to be successful.

Even if we are attempting to frame BTC's price movements in reference to earlier four year cycles, we should not absolutely expect that it's price movements are going to exactly mirror any of the earlier cycles, even though perhaps in the long term when we are looking back, we are largely going to be able to overlay the cycles and find them to be eerily similar even if while we are going through with them, we can also feel a lot of differences that seem to be going on, while caught up in the midst of the cycle.

Sure, anything can happen in terms of stopping the UP portion of the cycle from happening, but it seems way to early to write it off such up portion from happening.

In other words, what would you describe as strange exactly in terms of what is going on with bitcoin's price, bhooscream?  Anyone else believe that there is something strange that is going on with bitcoin's price movements and price dynamics, currently?  if so, please describe what is strange, exactly?  It's not like we have any guarantees that BTC prices are going UP from here, and where we are at is pretty damned bullish from my point of view, so if you believe it is strange, explain what is the strangeness, exactly?

[Sithara007]

People are overlooking the other big piece of news coming out of China now - the collapse of the biggest property company within China that has huge debts. Either one of two things is happening, or possibly a combination of both. Banning bitcoin puts a lot of news out there to distract from this massive company collapse that could ripple through the whole economy and send them into a recession. Secondly, a lot of people within authoritarian regimes are always looking to keep their money out of the hands of the central government that might confiscate it if they fall out of line or they're looking for convenient scapegoats at any time. This is an attempt to stop money fleeing the country in the simplest terms.

China is the most manipulated economy in the world and what happened to Evergrande is just the tip of the iceberg. The Chinese economy managed to attain so much growth in recent times because the investors had no option to go for anything other than the overpriced assets that were locally available. The average P/E ratios for Chinese stocks stand at 40-50, compared to 10-12 in the other markets. Real estate prices make no sense and a lot people invested in them since they had no other option. I won't be surprised if the Chinese economy undergo a massive correction sometime in the next 1-2 years. The ban on BTC is not going to help.

[Eclipse33]

The banning of crypto is in direct preparation for the rollout of the digital yuan. The Chinese government wants the people of china to have no alternative to that of the centralized ledger. I wouldn't be surprised if we see similar moves in other countries as their CBDCs near completion.

TLDR: Governments are severely afraid of the ability for citizens to retain their own assets in a decentralized way

[The Sceptical Chymist]

The uncertainty is if they will ever enforce it, that's where the doubts might be  

Sure, whenever a law is enacted you can always question whether the government is going to enforce it or not....but how many people are going to be willing to take the chance?  I guess to answer my own question, a lot of it would depend on what the penalties are for breaking the law.  Has China made any sort of statement as to what they're going to do with people who continue to own/trade crypto?

Same old same old, China banning Bitcoin. This sums it up

They didn't actually outright ban crypto transactions before, did they?  I remember when they banned mining (and ICOs too if I'm not mistaken), but this is new and much more restrictive than any laws they'd previously passed AFAIK. 

And to those saying too bad, so sad to China and this law: just wait until your country passes a similar law.  All it would take is the political will to do so and the stroke of a pen.  Plus this is a big blow to bitcoin; China isn't exactly a small country, and if their citizens can't use crypto that eliminates a lot of bitcoin users.

[Poker Player]

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.

The USSR clearly restricted progress: Citizens could buy a car but had to save the money beforehand and there was a waiting list that ranged from 4 to 10 years: "There were many automotive plants in the USSR, but getting a car was not just a matter of having the money. Some people even believe production was deliberately limited for fear that car ownership would give the Soviet people too much freedom."

there was a famous Reagan joke on the subject: "One of Reagan’s best Jokes. Soviet apparatchik: OK you can have a new car. Pay for it now and you can collect it in 10 years from today. Russian asks: Morning or afternoon. Soviet: why would that matter. Russian: the plumber is coming in the morning." (10 years from now, lol)

They say history sometimes repeats itself, due to people being determined to never learn from it.

Yes, I think history is being repeated by the Chinese with respect to Bitcoin, making the same mistake they made holding a silver standard instead of moving to the gold standard:

How the silver standard wrecked Chinas economy.

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.

We can leave the frame aside, but the Bitcoin at least theoretically, fits better with an Austrian School theory of economics (capitalist), than with a Keynesian economic theory (more socialist-left), let alone a Marxist one, with which it does not fit at all.

Another thing is that nowadays we have politicians everywhere who do not follow theories so much as what they believe will give them more votes.

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.

Yes, while I think the framework that Hydrogen puts forward is correct, I also don't think it's a hard-and-fast division that we're going to see:

1) Left-wing governments: ban bitcoin.
2) Right wing governments: embrace bitcoin.

There will be a lot of grey areas and I don't think he puts it that way either, he talks about what is most likely.

[amishmanish]

All of Bitcoin bulls think that China banning Bitcoin must be about it being scared of the financial freedom or just trying to FUD to buy low (which is really just a meme imo, a nation state wouldn't consciously behave this way).

There is one more aspect to this. China seems to have lost it with Bitcoin because the utility it provides as censorship-resistant money is something they see as enemy action. They tried controlling it but there is too much support from rest of the world. Their interest in Blockchain per se extend a lot to shitcoins like EOS, NEO etc. At one point, I believe they had a technology ranking for cryptocurrencies on which EOS was at the top. (Natuarlly because its a centralized shitcoin with 21 delegators, half of which are from China. Infact the machinations of the Chinese cartels to maximize their control over EOS is one of the reasons that it turned into such a burning wreck).

Most Chinese communites are neck deep in shitcoinery. Every memecoin and centralized scam coin generally has a huge chinese community. There people are probably just turning all of those earning straight to Bitcoin. Its not that China doesn't want their people to continue to dabble into shitcoins. They infact made the first official one with their CBDC Yuan. They love the fact that on a centralized blockchain, they can finally monitor everything.

The average Chinese though, are smart enough to continue to hold BTC. This is what annoys the CCP and is behind their persistent Bitcoin FUD. They just want them to become blockchain zombies but not have access to the only truly decentralized crypto. Good Luck CCP..lol..

[A BLackPearl]

China’s boycott of Bitcoin is already known. Is there any news next? This news does have an impact on the cryptocurrency market, and it will also cause some cryptocurrency enthusiasts to abandon Bitcoin.