[2021-09-24] China Says All Crypto-Related Transactions Are Illegal

[VanguardVale]

China’s central bank said all cryptocurrency-related transactions are illegal and must be banned, sending the strongest signal yet on its determination to crack down on the industry. All cryptocurrencies, including Bitcoin and Tether, are not fiat currency and cannot be circulated on the market, the People’s Bank of China said on its website. All crypto-related transactions, including services provided by offshore exchanges to domestic residents, are illicit financial activities, the PBOC said in the statement.

This latest harsh directive, which sent Bitcoin dropping as much as 5.5% on Friday, comes as global markets grow increasingly concerned over a debt crisis involving property developer China Evergrande Group. The Chinese government may also be responding to signs that miners are disguising their activities to stay in business. Vijay Ayyar, head of Asia Pacific with cryptocurrency exchange Luno in Singapore, said that while the Chinese government has made similar statements in the past, it is "a slightly nervous environment for crypto with the recent SEC comments and overall macro environment with the Evergrande news. So any comments of this nature will cause a sell-of in risky assets."

The nation's economic planning agency also said it is an urgent task for China to root out crypto mining, and the crackdown is important to meet carbon goals. Investors should expect "knee-jerk price reaction as China takes the wind out of Bitcoin's sails," said Antoni Trenchev, co-founder of crypto lender Nexo.  "The recent rebound from just below $40,000 has likely run its course for now."

https://www.bloomberg.com/news/articles/2021-09-24/china-deems-all-crypto-related-transactions-illegal-in-crackdown

[Litespirit]

China’s central bank said all cryptocurrency-related transactions are illegal and must be banned, sending the strongest signal yet on its determination to crack down on the industry. All cryptocurrencies, including Bitcoin and Tether, are not fiat currency and cannot be circulated on the market, the People’s Bank of China said on its website. All crypto-related transactions, including services provided by offshore exchanges to domestic residents, are illicit financial activities, the PBOC said in the statement.

This latest harsh directive, which sent Bitcoin dropping as much as 5.5% on Friday, comes as global markets grow increasingly concerned over a debt crisis involving property developer China Evergrande Group. The Chinese government may also be responding to signs that miners are disguising their activities to stay in business. Vijay Ayyar, head of Asia Pacific with cryptocurrency exchange Luno in Singapore, said that while the Chinese government has made similar statements in the past, it is "a slightly nervous environment for crypto with the recent SEC comments and overall macro environment with the Evergrande news. So any comments of this nature will cause a sell-of in risky assets."

The nation's economic planning agency also said it is an urgent task for China to root out crypto mining, and the crackdown is important to meet carbon goals. Investors should expect "knee-jerk price reaction as China takes the wind out of Bitcoin's sails," said Antoni Trenchev, co-founder of crypto lender Nexo.  "The recent rebound from just below $40,000 has likely run its course for now."

https://www.bloomberg.com/news/articles/2021-09-24/china-deems-all-crypto-related-transactions-illegal-in-crackdown

Yea, right.
That's why crypto coin prices are tumbling down, BTC is currently at 41945 usd.
"must be banned"! We'll see!

https://www.zerohedge.com/markets/china-declares-all-virtual-currency-transactions-illegal-sending-crypto-prices-tumbling
https://coinmarketcap.com/currencies/bitcoin/?period=7d

[stomachgrowls]

~snip~

As usual China would really make out their own laws and restrictions when it comes to crypto or bitcoin itself.Im not already surprised with these kind of decisions or laws that they've been making and its already been lots of

years on where this government is really making out some bullshit decisions out of those bullshit reasons.Its their decisions to make though and we dont really care on what are those intentions that they do have behind.

Each country does have their own laws and jurisdiction and its just sad to look at though on how they do perceive or view on things.

[IconFirm]

China's loss will be the world's gain. It's only a matter of time before they realise their mistake & do a huge U-Turn.

[Stalker22]

This is regular FUD, don't fall for it. These news are 3 weeks old already.


https://twitter.com/bigmagicdao/status/1441328777393426433?s=21

[Woodie]

This is regular FUD, don't fall for it. These news are 3 weeks old already.


https://twitter.com/bigmagicdao/status/1441328777393426433?s=21

Can this really be fud mate? its everywhere on the internet  ,tv, radio you name it and top media houses like Bloomberg, Aljazera, BBC and many others are all running this news headline of crypto being banned almost completely. If this turns out to be FUD then journalists aren't doing enough investigative work to try and sieve out any fake news and report what is true or not, but then again fake news kind of gives them the numbers they want so market price might be collateral damage.

[Kong Hey Pakboy]

China's loss will be the world's gain. It's only a matter of time before they realise their mistake & do a huge U-Turn.

They know what they're doing and they really don't care either way that will happen because they will definitely get back to it anytime they want if they see the merit of owning some bitcoins and at the same time the profit that it yields.

[Stalker22]

Can this really be fud mate? its everywhere on the internet  ,tv, radio you name it and top media houses like Bloomberg, Aljazera, BBC and many others are all running this news headline of crypto being banned almost completely. If this turns out to be FUD then journalists aren't doing enough investigative work to try and sieve out any fake news and report what is true or not, but then again fake news kind of gives them the numbers they want so market price might be collateral damage.

I am not saying that this is fake news, but that the news is a few weeks old and the market has already reacted to it. I have no idea what China is planning, but it seems to be releasing news like this on purpose in a targeted manner.

[Kakmakr]

I think the world has accepted that the Chinese government are working towards a "blanket" ban on all things Crypto currency. The Chinese government cannot handle anything that takes away "control" over their citizens.

The price will also not be influenced a lot, because the speculators has priced in the affect that this decision might have had on the market. We might see a small dip in the price and then it will go up again... and everything will go back to normal.  

[SFR10]

China’s central bank said all cryptocurrency-related transactions are illegal and must be banned,

By the look of things, they're allowed to hodle what they already have ^{[as long as they don't use it for their transactions]}.
^{- I wonder how they're going to deal with decentralized exchanges?}

The Chinese government may also be responding to signs that miners are disguising their activities to stay in business.

I was surprised to see such moves are still being made in China... It doesn't take a genius to distinguish a normal data center from one that does other stuff ^{[all it takes is a single visit]}!

its just sad to look at though on how they do perceive or view on things.

All of this is just because of their own CBDC!

It's only a matter of time before they realise their mistake & do a huge U-Turn.

They want to have full control and that's exactly the opposite of what a "U-turn" move would achieve.

[bryant.coleman]

A question that a lot of Chinese users have been asking is whether cryptocurrency possession is punishable (i.e illegal) or not. The statements and directives doesn't explicitly refer to possession of cryptocurrency, but my understanding is that it also comes under the ambit. Is the regime going to prosecute someone just for the possession of some codes? I don't think that they will go that far, even if it is illegal. The message that I get is that as long as the user doesn't move his coins, he's going to be OK.

[Slow death]

The message that I get is that as long as the user doesn't move his coins, he's going to be OK.

but this is also something that hurts a lot, imagine that someone in china has 1000$ in bitcoin and is very sick in need of money but due to these impositions he cannot move the coins he saved so much. it will be a real pain to suffer for lack of money when you have bitcoin and you can't use it because you have a dictator government


I just read this sad news:

Second-largest Ethereum mining pool to suspend all operations

Sparkpool, the second-largest Ethereum mining pool in the world, is suspending operations due to the ongoing Chinese crackdown on crypto.

are people who lost their business

[bbc.reporter]

This is regular FUD, don't fall for it. These news are 3 weeks old already.


https://twitter.com/bigmagicdao/status/1441328777393426433?s=21

Can this really be fud mate? its everywhere on the internet  ,tv, radio you name it and top media houses like Bloomberg, Aljazera, BBC and many others are all running this news headline of crypto being banned almost completely. If this turns out to be FUD then journalists aren't doing enough investigative work to try and sieve out any fake news and report what is true or not, but then again fake news kind of gives them the numbers they want so market price might be collateral damage.

Agreed. Molly is only another bitcoin larper who only wants your engagement on social media. Everything of her news reports are biased towards bitcoin because she is a holder. She cannot be trusted as a journalist.

China has been banning everything connected to the cryptospace. It has also begun to block popular websites like coinmarketcap.com, coingecko.com and also tradingview.com. Also, Bobby Lee who was the owner of one of the cryptospace’s oldest exchanges said that crypto OTC desks will also be banned.

Source https://www.coindesk.com/business/2021/09/27/crypto-og-bobby-lee-says-chinas-otc-desks-are-next-to-go/

[davis196]

China's loss will be the world's gain. It's only a matter of time before they realise their mistake & do a huge U-Turn.

No.I don't think that China is ever going to step back and adopt cryptocurrencies for the second time.
Dumping the crypto industry won't be a big loss for the Chinese economy.On the contrary,the Chinese economy might even get some benefits-less carbon emissions,more electricity for the manufacturing business,less capital being exported out of China by using cryptocurrencies(if they successfully fight illegal financial activities,which is questionable).I kinda get the point of view of the Chinese communist government.
Anyway,Bitcoin and the crypto world will be far better without the constant FUD coming from China.

[waybesuricata]

The negative statements made by China had a serious impact on cryptocurrencies in the previous months/years. When we look at it now, we see that negative statements do not have that much effect.

[stomachgrowls]

The negative statements made by China had a serious impact on cryptocurrencies in the previous months/years. When we look at it now, we see that negative statements do not have that much effect.

So it simply implies that decisions like this which made out by China or any other country wouldnt really be having that long term effect into the market.

Im not already surprised on how China is making these kind of decisions which turns out to be typical or already just like ordinary day
which they dont get tired on making these kind of decisions which really sucks if you do ask me but if you do really
believe the potential of this market then these news wont freak you out.

Ban all they can but that wont really be an indicative thing for you to rely specially into your investment decisions.

[Woodie]

The negative statements made by China had a serious impact on cryptocurrencies in the previous months/years. When we look at it now, we see that negative statements do not have that much effect.

I thought with time we got immunized over negative news brewing from that part of the world which always pop up year in, year out. If i can recall this first started off as fud about cryptocurrencies a few years back , then the moved to ban miners over carbon emissions and succeeded to push them away now seeing the market tanking , could these guys be behind the recent bearish trend...

[hv_]

Better stay on TCP/IP transparency = uncrypted level with the original Bitcoin protocol. Problem solved

[vm1990]

i got a theory behind this. people invest millions in china into crypto most bad years china bans cyrpto so Chinese people sell in for fiat currency suddenly china's got lots of extra money to prop up there faked growth figures and attract millions from stupid inverters.

china is actually a failing country but news is controlled and so are government figures. its also THE most corrupt country and nothing like how communism is suppose to work

[bbc.reporter]

@vm1990. If China is a failng country then the whole world should look for another country where they can depend for manufacturing the products they need to keep their own economies running smoothly hehehe. I speculate that India might be this country.

In any case, this article argues that Defi might be bullish for Chinese developers who want to create projects in the cryptospace. It appears what bitcoin maximalists called a scam found an important use case.



The latest China "ban" was not entirely new, but had some new details. Now Chinese crypto projects are going underground—and it's all good for decentralization.

Crypto builders still in China need to remain 100% anonymous now, which is difficult and not always possible. They must look abroad, and adjust the way their organization is structured, marketing messages delivered, and more importantly, how their project's expectations are met.

“We are gradually shutting down Chinese business, which is honestly fine," one DeFi founder told me, asking to remain anonymous. "Most of our users are international anyways."

The golden days of building crypto empires by feeding off China’s large consumer base are over. But the latest ban is a catalyst to crypto’s decentralization. It's bullish for DeFi, and for decentralized mindsets.

Source https://decrypt.co/82243/china-bans-bitcoin-again-bullish-for-defi