[CAIXIN] PBOC BANS ALL BTC FIAT CHANNELS (DEADLINE MAY 10)

[y3804]

http://finance.caixin.com/2014-04-25/100670605.html

In a recent meeting, the PBOC publicly criticized two banks, Bank of China and China Merchants Bank, that still provide services to BTCChina.

PBOC Official Mu reaffirms their policies on Bitcoin which stated all financial institutions cannot directly or indirectly provide services to Bitcoin related companies.

After the crackdown on Bitcoin, many Bitcoin exchanges, including Huobi and OKCoin, find ways to bypass regulation by creating “deposit codes” and allow customer to purchase or trade these codes through online stores.

Recently, OKCoin announced their new “deposit codes” system. The new system will allow customers convert their CNY deposits at the exchange into codes of equivalent value. They can either transfer these codes to other customers on the exchange or sell them at online stores or other public marketplaces. Huobi and BTCChina also have a similar system.

During the recent meeting, the PBOC clarified some languages in their policies. One PBOC official said, “The current level of services that banks and third-party payment processors provide counts as directly providing services to Bitcoin related companies. Online stores and public marketplaces that sells or trades “deposit codes” from Bitcoin exchanges counts as indirectly providing services to Bitcoin related companies”. The PBOC official made clear that both of kinds of services must stop. Banks and third-party payment processors must close their payment terminals at these exchanges and terminate their accounts immediately.

As of April 24th, Bitcoin exchanges had closed most of their deposit channels including banks and third-party processors. However, some banks are still providing deposit and withdraw services to Bitcoin exchanges.

Also stressed during the PBOC meeting is that withdraws of CNY through Bitcoin exchanges must end as well. The PBOC is asking all government agencies to monitor Bitcoin related money transfers. Agencies must respond swiftly to the list of bank accounts that the PBOC sent out.

• PBOC requires commercial banks and 3rd party processors to cease services dealing indirectly with BTC. E.g. OKCoin alternative recharge channel, Alipay, etc.
• The only remaining banks offering BTC services (Bank of China; China Merchants Bank, BTCChina and Huobi) must immediatly close their fiat deposit channels
• Bitcoin exchanges (and their banks) must halt BTC to cash withdrawal. Read: Fiat withdrawal channel.
• Alipay has already terminated all services dealing with Bitcoin (as of April 24).

Update (April 26)

http://www.weibo.com/2149945883/B1wQbdDTM?mod=weibotime

Since China Merchants Bank recently issued a notice, Bitcoin Chinese capital security considerations for users and platform stability operations, decided to suspend the account of RMB CMB recharge. Subsequent updates, stay tuned to our official website and microblogging, Thanks again for your BTCChina's concern and support bulletin

[Ibian]

Shut up.

[Elwar]

Banks...not government.

[y3804]

Banks...not government.

Edited

[Wandererfromthenorth]

Translation sucks balls, i can't read this thing.

What about bank transfers for example in BTC China? BTC China was not touched by any notice from PBoC, so what about now? Are CNY bank deposits halted now?

[y3804]

Updated official Caixin link. Feel free to use your own translator. Google sucks balls.

[Dalmar]

So predictable...

[Elwar]

May 10 is the final final final final final final ban...honest.

[y3804]

Okay, the correct translation is this: Central bank bans fiat deposits AND withdrawals (cash), effectively killing all fiat channels related to BTC.

I'll have a translated version soon. Stay tuned

[megashira1]

Okay, the correct translation is this: Central bank bans fiat deposits AND withdrawals (cash), effectively killing all fiat channels related to BTC.

I'll have a translated version soon. Stay tuned

Is that not what they aimed to do on the first ban?

[y3804]

Okay, the correct translation is this: Central bank bans fiat deposits AND withdrawals (cash), effectively killing all fiat channels related to BTC.

I'll have a translated version soon. Stay tuned

Is that not what they aimed to do on the first ban?

1st ban was ban fiat deposit via bank transfer and 3rd party processors directly related to BTC payment.
2nd ban is ban fiat deposit via bank transfer, cash withdrawal, 3rd party processors directly and indirectly (read: coupons, vouchers, prepaid cards, OKCoin "bypass" methods) related to BTC payment. But this time it is a definite ban (lol)

In the most basic terms, they're doing everything they can to kill all fiat channels in/out of BTC. In other words, China will be out of the game extremely soon. There will be no more capital flowing in China markets soon, people will want to withdraw ASAP.

[Torque]

Amazing how you just show up out of the blue to enlighten us with this news, just as the price is going down!  Uncanny the timing!  

I'm so glad that you are not affiliated with those idiot troll day traders that have to make up FUD in order to get the price drop that they need to make a quick buck a few days from now.  I'm sure that no one in China will buy a single bitcoin after today, as the charts will clearly show.


/sarcasm
 

[kooke]

Didn't a Chinese bank official earlier state that it's impossible to ban btc? I guess this could really slow down the market there, but I don't think they can kill it off completely.

[y3804]

Amazing how you just show up out of the blue to enlighten us with this news, just as the price is going down!  Uncanny the timing!  

I'm so glad that you are not affiliated with those idiot troll day traders that have to make up FUD in order to get the price drop that they need to make a quick buck a few days from now.  I'm sure that no one in China will buy a single bitcoin after today, as the charts will clearly show.


/sarcasm
 

I don't think you realize how severe the consequences of Caixin news can have on BTC price.

If the news are true and they ban fiat withdrawal channel, most Chinese traders will have NO CHOICE but to withdraw in the small window between NOW and MAY 10 at the highest price they can sell their BTC off

Didn't a Chinese bank official earlier state that it's impossible to ban btc? I guess this could really slow down the market there, but I don't think they can kill it off completely.

They never planned to ban BTC as a commodity trading item. Never.

[Dalmar]

If the news are true and they ban fiat withdrawal channel, most Chinese traders will have NO CHOICE but to withdraw in the small window between NOW and MAY 10 at the highest price they can sell their BTC off

On May 10th there will be another rally, just like April 15th.  

[y3804]

If the news are true and they ban fiat withdrawal channel, most Chinese traders will have NO CHOICE but to withdraw in the small window between NOW and MAY 10 at the highest price they can sell their BTC off

On May 10th there will be another rally, just like April 15th.  

Dream on. Article clearly states that the Central bank emphasizes that fiat withdrawal channel must be halted. Who will pump BTC? Huobi always led the rallies.

now is time for exchanges to move offshore completely

[Dalmar]

Dream on. Article clearly states Central bank emphasizes that fiat withdrawal channel must be halted. Who will pump BTC? Huobi always led the rallies.

now is time for exchanges to move offshore completely

I was just being being sarcastic, as on all previous China deadline dates either nothing happened (Jan 31st) or it rallied (April 15th). I wouldn't be surprised if the Chinese manipulators did this again with their fake volume.

[Raystonn]

Why would you need to withdraw fiat when you can hold BTC and use the Xapo debit card anywhere MasterCard is accepted?  That card should be usable in most larger locations in China.

http://techcrunch.com/2014/04/24/xapo-now-offers-the-first-credit-card-linked-to-your-bitcoin-wallet/

[cbeast]

This has got to be another hoax. Someone was bored with the stability.

[rebel24]

I have seen this coming for weeks.
China is finally getting to the point where people in China would have to buy bitcoin off sources that function like localbitcoins.com (where people meet physically and trade cash in hand for bitcoin).

China can then try to ban that, but if they do and they fail to coerce people to stop buying bitcoin it undermines the power of the government (and they WOULD fail at that, so I would be interested to see if they really would try that).


edit add: This also wont stop massive Chinese millionaires/billionaires from buying. With that much power, they could trade assets/cash in China, for cash overseas and use that to buy bitcoin.
It almost makes me wonder if it is big chinese businessmen who are working in unison with the government in this to drive down prices in order to buy more... haha, I suppose that could be a spoke in the wheel