WSJ - China Bank Warning!!!

[RawDog]

http://online.wsj.com/news/articles/SB10001424052702304655304579547251552490962?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304655304579547251552490962.html

This is hilarious.  How many times are the Chinese bank going to announce they don't want to deal in bitcoin?  OK - good riddance China.  Bitcoin will develop just fine without China. 

The only contribution so far from China was wild speculation.  Out of control idiots trying to get rich quick is the last thing bitcoin needs.  Let everyone else go build some nice companies - while China keeps running to the press telling them how evil bitcoin is.  WTF? 

I think it is funny that China and Russia are doing everything imaginable to get behind in the bitcoin revolution. 

[1Referee]

This is hilarious.  How many times are the Chinese bank going to announce they don't want to deal in bitcoin?  OK - good riddance China.  Bitcoin will develop just fine without China. 

How many times are people going to make "China will ban bitcoin" "Warning from China" "China will ban DJ VanderFart" topics....

China is not important anymore....

[LiteCoinGuy]

paywall, can u post it?

[Keyser Soze]

Full Article:

China Central Bank Warns Banks on Bitcoin
May 7, 2014 5:31 a.m. ET

BEIJING—China's central bank recently summoned senior executives of the country's major banks, urging them to cut off all bitcoin-related business and hardening its already-tough stance on the virtual currency.

The People's Bank of China 601988.SH +0.39%  warned the banks they need to set up special groups to monitor accounts that might be conducting bitcoin-related trades and said those that failed to observe its tightened restrictions would be subject to public censure, according to bank officials.

The central bank, which initially took a more neutral position on bitcoin, late last year began shifting its stance out of concern that the virtual currency might be used to skirt capital controls or thwart anti-money-laundering regulations.

More recently the People's Bank of China has called bitcoin a "tool for speculation."

Bitcoin is generated by computers and isn't backed by any central bank or government.

China initially was an important market for bitcoin, and demand in the world's second-largest economy had propelled global prices sharply higher.

The price of the virtual currency stood at $1,147.25 on Dec. 4—the day the Chinese central bank made its first announcement of restrictions on bitcoin business. Bitcoin was at $427.29 in afternoon trading Wednesday, according to the website of London-based Coindesk, which tracks global bitcoin news and prices.

At a meeting on April 24, central-bank officials admonished a number of banks, including the top five state-run banks, for not strictly observing the central bank's tightened regulations. All five of the banks had continued to allow new bitcoin-related accounts to be opened despite warnings against this practice, people familiar with the matter quoted central bankers as saying.

Industrial & Commercial Bank of China Ltd. 601398.SH +0.59%  , the nation's biggest bank in terms of assets, declined to comment. The other four big banks—China Construction Bank Corp., Agricultural Bank of China Ltd. 601288.SH -0.42%  , Bank of China Ltd. and Bank of Communications Co. 601328.SH -0.27%  —didn't immediately reply to requests for comment.

The central bank didn't have an immediate comment.

In its Dec. 4 notice to commercial banks, the People's Bank of China said that domestic financial institutions couldn't conduct settlement or payments related to bitcoin. It also barred trust companies and fund-management firms from making bitcoin-related investments and advised insurers not to insure bitcoins.

The Wall Street Journal reported last month that the central bank had ordered commercial banks and payment firms to shut bitcoin trading accounts as of April 15.

In the April meeting with commercial bank executives, the central bankers said bitcoin trading remained quite active, and that banks needed to "fully appreciate" the risks associated with the fledgling business.

Commercial banks should also post statements before May 10 notifying clients that using their accounts at the bank to trade bitcoin is prohibited, they said.

"We are checking accounts suspected of having links with bitcoin business after the central bank's latest order," said one bank official familiar with the central bank's latest warning.

Bank of China, the country's fourth-largest lender by assets, and China Merchants Bank Co. 600036.SH -0.10%  , the sixth-largest by assets, announced last month that institutions and individuals would be prohibited from using their bank accounts to conduct bitcoin trading.

Agricultural Bank of China on Wednesday posted a similar statement on its website.

In China, there are few outlets where bitcoin can be used to buy goods and services.

Last month, BTC China, one of the country's leading digital currency exchanges, installed China's first bitcoin ATM in Shanghai and launched an online app allowing individuals to buy and sell bitcoins. The ATM isn't connected to any of China's banks.

—Grace Zhu

[designfail]

Chinese could easily start exchanging BTC with each other for goods and services since their national currency is over-manipulated by government. If needed, there will be hundreds of thousands of small private BTC exchanges on every corner.

Looks like there is no more fight "ant vs tree". It becomes more like "man vs tree".

[RawDog]

Chinese could easily start exchanging BTC ....    Looks like there is no more fight "ant vs tree".

Edith Cresson the ex Prime Minister of France said Chinese people are like ants.  Did you get this analogy from her? 

[designfail]

Edith Cresson the ex Prime Minister of France said Chinese people are like ants.  Did you get this analogy from her?  

nope. it was from explanation of one chinese guy: he explained how their "PBOC / BTC exchanges" relationship works: like "ant vs tree" (where "ant" -> any btc exchange, and "tree" : PBOC and/or government).

Got the picture?

[LostDutchman]

http://online.wsj.com/news/articles/SB10001424052702304655304579547251552490962?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304655304579547251552490962.html

This is hilarious.  How many times are the Chinese bank going to announce they don't want to deal in bitcoin?  OK - good riddance China.  Bitcoin will develop just fine without China. 

The only contribution so far from China was wild speculation.  Out of control idiots trying to get rich quick is the last thing bitcoin needs.  Let everyone else go build some nice companies - while China keeps running to the press telling them how evil bitcoin is.  WTF? 

I think it is funny that China and Russia are doing everything imaginable to get behind in the bitcoin revolution. 

Well, both China and Russia have had revolutions and they think they are very good at htem.

Not.

[Malin Keshar]

hy ban when you can spread uncertainty and make people don't want buy bitcoins?

[caryatidgh]

f china communist

[Elwar]

Wait...China is banning Bitcoin!?!?!

ZOMG!! SELL SELL SELL!!!

[Haskel85]

It is a revolution, effort!

[titan86]

It looks like the Chinese bank gets a spesial pleasure announcing they don't want to deal in bitcoin once more

[vpitcher07]

the PEOPLE'S bank of china is banning a currency run by the PEOPLE. Communism is a pathetic joke. I feel bad for those living under that joke of a government. The communist party of China will collapse, just like every other communist party...Just a matter of time.

[LostDutchman]

the PEOPLE'S bank of china is banning a currency run by the PEOPLE. Communism is a pathetic joke. I feel bad for those living under that joke of a government. The communist party of China will collapse, just like every other communist party...Just a matter of time.

Yep.

[master-P]

Chinese banks announced the ban a few months ago. They probably haven't taken any action yet because they want to give people a chance to get their money out before they actually start cracking down. Blame the exchanges for continuing to accept back transfers even though they know it's not allowed.

[mikewirth]

Chinese banks announced the ban a few months ago.

Chinese are not innovators.  They like to copy and steal ideas and profit from others work. Chine only rose to financial heights because of MASSIVE slave labor in manufacturing.  SLAVE LABOR is the #1 Chinese export.  The government pays its people with bullshit undervalued RMB and makes them work like animals all day long. 

Of course China doesn't like bitcoin.  Chine hates innovations.  China hates money which it cannot control to force people into extreme labor for tiny wages. 

BITCOIN WILL FREE CHINESE SLAVE LABOR!!!

[BADecker]

China just might be the place where Bitcoin comes of age.

In America and Europe, there are many money institutions that allow transactions, knowing full well which ones are dealing with bitcoins and which are not, dealing directly, that is. If China banks decide they are going to filter all transactions, and totally disallow people that are dealing with bitcoins, what will happen? China didn't invent the Internet, but it is the place where the computers and all sorts of electronics are manufactured.

If the Chinese banks won't deal with people who use Bitcoin, the people just might stop dealing with the banks, since they have the electronics to deal with Bitcoin, and Bitcoin is far better in most ways that fiat. It may not happen overnight, but it just might be that China is the one that - against the will of her rulers - delivers us from fiat.

In America money usage is rather easy. We have a lot of freedom with how we use money, although that is changing somewhat. So, what do we do? We play with Bitcoin rather than using it. We dabble in bitcoin while living with fiat. If China banks deny fiat to Chinese people who use Bitcoin, what will the people do? Will they switch to Bitcoin, or remain with the banks? I suspect that they will find ways to deal with Bitcoin in a serious, non-dabbling way, all behind the banks. Meanwhile, we will continue to dabble.

[Fatpony]

IMHO someone or somebody is paying them to announce that from time to time. Someone who has lots of money to play the market by droping price by selling lower and lower, and then buying them in a bulk.

[mikewirth]

IMHO someone or somebody is paying them to announce that from time to time. Someone who has lots of money to play the market by droping price by selling lower and lower, and then buying them in a bulk.

Market manipulation is a Chinese specialty, just like Chop Suey!