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

[raidarksword]

This is just a recycle news, over and over again. Every year china announces they banning bitcoin and this is sickening to hear every year and yet they just fudding it just to buy low, in my opinion. Paper hands will always the first to sell and in the end they the one to cry first as well.  Don't fall for it guys, they just want to buy your bitcoin at dip. So hold strong and believe me bitcoin will soar high up again.

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[worle1bm]

So once again chinese banning bitcoin like they are doing from several years? This will have same impact on bitcoin and it's "The Holders don't care" as prices are intended to rise over after short dips china plans in order to create FUD and maybe accumulate more at dips themselves.The china banned mining and hashrate of 65% got diversified and now conditions are normal again so what impact did china leave on prices? You can't stop it with such ridiculous bans and play dirty games in which they will end up losing.

[fillippone]

Apparently, diminishing returns on shorting China bans:


https://twitter.com/1337_pete/status/1441374778544115728?s=20

Detail of the image.

[so98nn]

It does not matter if china bans or unbans the crypto because we have learnt one important thing since fe years! :- It does not affect bitcoin/crypto space at all. What will happen max to max? Bitcoin and rest of the crypto will crash because Chinese will be selling their assets so that they save themselves from Dictatorial Government! So this will go on lets say for few months to a year so that all the selling orders will be fulfilled by rest of the world.

Then what? Everyone will forget it, bitcoin will be on flat sale! Billionaires from the globe will jump in, after couple of years halving will occur and this will bring more and more value to bitcoin.

We will see glorious day where BTC will be equal to triple than what it is today! We will thank China on that day for banning it. 

[Leviathan.007]

That's maybe new and surprising to some people but actually, we all know what China is doing and if you want to get more information about their reactions you will need to learn about economic communism, China is trying to stay against bitcoin and they have some reason for it, sometimes they say Bitcoin is invaluable, sometimes they say that's consuming too much energy and sometimes they say bitcoin is usually for money laundry and none cares about their thoughts, banning crypto-related transactions from China will only affect the market emotionally and temporary nothing changes for the holders.
 

[fillippone]

Well, someone asked why the government made illegal every Bitcoin transaction or activity, instead of the holding of the orange coin.

Would anyone take a wild guess?
Look here: Chinese government is holding bitcoins


https://www.kevinrooke.com/bitcoin

Chinese Government made themselves hodler by law!


Regarding the US government, those are, I think, seized Bitcoins that will be sold via public auction (a wonderful way of buying "clean" BTC's, usually at a premium to market price).

Other governments are missing, at least Bulgaria and, of course, El Salvador.

EDIT:
Apparently (no full confirmation) China sold their BTC in 2020.

Source

[Lucius]

@fillippone, as for Bulgaria and China, see posts 1 and 2. Bulgaria sold the seized BTC in early 2018, and China reportedly during 2020.

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.

It is not very logical to compare China in political terms with the rest of the world, especially with Western democracies. It is true that politics has the power to change everything with the stroke of a pen, but it is also true that the people of China do not protest out of fear, while people in other parts of the world are much more willing to fight for what they believe.

China has had a ban on crypto trading for years, and I don't see that affecting the price of Bitcoin - of course, they used every possible way to keep it in the background, but most Chinese in China stopped trading Bitcoin a few years ago.

[noorman0]

Well, someone asked why the government made illegal every Bitcoin transaction or activity, instead of the holding of the orange coin.

Would anyone take a wild guess?
Look here: Chinese government is holding bitcoins

Just clicked on the "Source" button,
It is said that the 194,775BTC are one of several cryptocurrencies seized by Chinese court from the PlusToken Ponzi scheme last year, totaling over 4 billion USD (at that time).

Just hope that the Chinese government's opposition to bitcoin is realized by sending those bitcoins to the burn address.

[stompix]

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?

Not that I know and I did a lot of searches about this and they only tell the same thing, it's illegal, in involves punishment but we don't know how bad those will be and this will be the deciding factor.

China has been "banning" crypto-related stuff from exchanges to ICOs for a long time but has anyone seen anything that showed they are truly committed to it? Usually, when the CCP wants to send a message it does so in force, to date we haven't seen anything like that, no news no public shaming no police arrests, that's why usage has continued there, it's like VPN usage, as long as you don't piss the government you can use it freely, cross the line and suddenly the entire world forgets about you.

We will see in the next week what's their attitude is, I guess either the pools all the mining gear manufacturers will be the first to launch a signal if things go bad, they're the most exposed, known names, locations, finances. If we also have news with mining gear squashed down and people in handcuffs put into army trucks making the headlines then they are serious and you can erase China from the crypto map. If nothing happens, well, things will go on as they have for the last years.

Anyhow, I guess we will have a breather till worse things might happen, they have a ton of problems on their plate, crypto is ignorable at this point.

[fillippone]

@fillippone, as for Bulgaria and China, see posts 1 and 2. Bulgaria sold the seized BTC in early 2018, and China reportedly during 2020.
 

Thank you, duly noted.  Updated the relevant post about China. Now I am going to  complain with my source about Bulgarian Bitcoin (Giacomo Zucco on the Italian bitcoin Telegram chat...)

[oHnK]

Honestly, I don't look at the original source of the news from the China government. I just looked from ur thread, and the local news of my country just posted the news yesterday. So, I don't know this is old news or not, but I have some views about this condition. The China government has been shocked by the news of Evergrande which affected the stability of the country financially and I looked at the news, the government intervene the bank sector with bailout 18,6 Billion USD. I don't know exactly whether this news related with the banning or not, but I guess that this is just prevention of the government to keep their economy keep stable with this condition. Because after Evergrande case, their economic wasn't fine enough. Because based on their opinion that Bitcoin can create a bubble so they have to be strict to ban the crypto.

[uttoransen]

Old news or not, banning bitcoin now is a false move for any country. On the other hand, those countries that are now adopting bitcoin are the ones that has all but to gain.

Think about it - is tomorrow a country bans Gold, (mining, holding, trading ...) what will happen - that country will lose gold and other countries will benefit. The same thing is happening to China and their loss is the profit for the rest of the world.

[BITCOIN4X]

~Snip
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.

I believe that China's ban on mining, ICO, and crypto trading has made demand and trading volume and market cap decline. China is known as a country that is a bit stricter in law enforcement, so I don't think many people would dare to break the law if the prohibition law was enforced. What makes me wonder is why and why they should do it when they are one of the countries that has good technology in all sectors. They seem too paranoid and think bitcoin and traded altcoin can destabilize their country's economy. But I can assure you of one thing, they have a hidden desire with this ban and may not have been revealed.

[Charles-Tim]

China banning bitcoin, again

Exactly, China has banned bitcoin several times, but bitcoin has increased even over and over and reach all-time-high as usual. I read a news about how cryptocurrencies has recovered from China FUD 19 times including today which I do not even yet seen significant.

Crypto has recovered from China's FUD over a dozen times in the last 12 years

I believe that China's ban on mining, ICO, and crypto trading has made demand and trading volume and market cap decline.

The last China FUD during the bitcoin and other crypto mining crackdown resulted to bitcoin price falling from $45000 to $30000, the price drop was so significant, but bitcoin has only falled just 5% after this recent FUD as a result of PBoC making bitcoin illegal for its citizens. The fact still remain that bitcoin does not depend on China, crypto did not even falled as many people will be expecting this time around.

[Tumanggor]

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

FUD issued by China, in the future it will not work anymore

China is by far the most "dislike" country with bitcoin. every year they issue a statement to destroy bitcoin, the biggest one is when they ban all mining activities in their country

let's keep calm and hold by ignoring all the FUD spread by China and even other big countries

[JayJuanGee]

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.

You have a kind of funny way, The Pharmacist, of frequently attempting to view the bearish side of any kind of news and then taking it to an extreme... same was true in the microstrategies thread in which you were ready, willing and able to point out negative aspects (or potential negative aspects) of what should have been positive news.

Sure, in the case of China bans bitcoin again, it is not exactly positive news, but it is way the hell less negative and dire as you are making it out to be.  In some sense, you seem to be underestimating some of the various challenges that bitcoin presents to various governments and status quo institutions that are trying to deal with this ever growing and pervasive phenomenon (and force for good a lot of us probitcoin folks - some call bitcoin maximalists -  would argue). 

Yes, let's see how effective China is going to be in this regard and let's see if they can follow through.. Let's also see if some countries will attempt to take similar stances and see how they do.  And, let's see if some countries take an opposite stance and how they fair. 

I think part of my point remains that the defeat of bitcoin is not as obvious as you seem to be making it out to be, and it really presents a kind of formidable challenge in which it is seeming more and more likely to prevail, even if some countries and status quo financial institutions go down some hardball aggressive battling tactics.. and probably some of those countries and financial institutions who are playing hardball against bitcoin, they are likely either going to have to lighten up or perhaps perish and become irrelevant.  Sure, you can spin the matter however you like including appropriating your investment  of time and money into bitcoin however you want including if you aggressively invest into bitcoin, passively invest or choose some practice to attempt to work against bitcoin (or perhaps act as if you are playing devil's advocate, which likely shows that you are failing/refusing to actually understand some aspect of the power of where bitcoin is already at - even if bitcoin is still likely going to continue to have some challenges along the way).

[bhooscream]

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?

I am sure, you understand what I mean. What I am talking about is the situation that Bitcoin price hard to pass $50k lately. It has tried several times to maintain above $50k, but unfortunately always failed. One of the reasons is many FUDs spreading lately after we heard about China banned Bitcoin mining in the country. Then, we see the Bitcoin price move was mostly like dumped hardly in the last few weeks. It seems triggered by many FUDs spreading around us lately. However, it is only my personal view, sorry if it is not the same as you think, sir.

[Charles-Tim]

What I am talking about is the situation that Bitcoin price hard to pass $50k lately. It has tried several times to maintain above $50k, but unfortunately always failed. One of the reasons is many FUDs spreading lately after we heard about China banned Bitcoin mining in the country.

Price volatility makes bitcoin healthy, the holders take profit and the people are waiting already to invest at low price. The recent price fall was not as a result of FUD but investors taking profit was more linked to it when bitcoin price plummeted from $52700, the recent FUD effect is not significant at all as this is even weekend.

All-time-high is certain.

When bitcoin increased to as much as $20000 in 2017, it later decreased to less than $10000 many times, but what is certain is that the price will certainly increase and reach all-time-high.

The $50000 you are commenting about today that bitcoin is struggling to reach will be a price bitcoin will never again fall or decreased to at a time in the future.

[tygeade]

China is just trying to make it as illegal as it gets for crypto users in their nation, but they do not realize that they are hurting themselves . I am very very glad that a huge dictatorship in the world is now losing a ton of money to other nations. People all around the world are making money hand over fist but at the end of the day Chinese people will not be that and since we know that Chinese people do not have anything proper and it is owned by the CCP then it means that we are doing fine for now with them not making any profit at all.

It is not something simple, it takes time but at the end of the day if we could just make them weaker and poor again, it would destroy the power CCP has.

[AndySt]

~Snip
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.

I believe that China's ban on mining, ICO, and crypto trading has made demand and trading volume and market cap decline. China is known as a country that is a bit stricter in law enforcement, so I don't think many people would dare to break the law if the prohibition law was enforced. What makes me wonder is why and why they should do it when they are one of the countries that has good technology in all sectors. They seem too paranoid and think bitcoin and traded altcoin can destabilize their country's economy. But I can assure you of one thing, they have a hidden desire with this ban and may not have been revealed.

China has recently begun to get carried away with excessive zeal by the state's interference in the issues of economic functioning, and the prohibitions about cryptocurrencies quite fit into this paradigm. It is quite strange to hear about a country with one billion with a third of the population and the second largest economy in the world, which is so much afraid of the destructive influence of cryptocurrencies that it practically excludes its part of the population from this process. I think that these measures, as well as restrictions on listing on foreign exchanges for its companies, indicate that China is trying to isolate its economy from the world economy a little, which in the future may be a big mistake, despite all the self-sufficiency of the Chinese economy.