Topic: Asian Whales: China will ban Bitcoin trading in Chinese Yuan or USD but... (Read 1694 times)

China is big.  In fact the bitcoin community in China is a small and very minor part of fintech.  However, with a billion people.Most mining pools are actually in China, which mean miners first sell their BTC to yuan and since the Central Bank of China doesn't control the Bitcoin, is a good business.

My opinion is that with bitcoin you can only fight economic ways. If China or any other state can offer its citizens more favorable conditions they will work for Fiat. The problem is that the government cannot do. In this case, the people will find the opportunity to use bitcoin. If need be then people will start to leave the country. It will also have negative consequences for the state.

I also see it as the beginning of an effort among the Chinese establishment to make amends with American politicians in regards to the Chinese currency situation.American politicians wish to gain more fiscal maneuvering room without overly upsetting the CCP. The CCP may be willing to go along in a limited fashion in return for major concessions. This can be best interpreted as part of that ongoing process.They can not do that to the Chinese so China is giving the world an alternative trade currency.

They can't control Bitcoin they are trying to influence it but they will never be able to control it.

It seems to me that this time the Chinese have outsmarted themselves. I'm not from China and I don't care what they come up with on its own territory. They had a chance to become leaders in the field of cryptocurrency but they missed their chance. Exchanges in South Korea and Japan will gladly take the sales volume in Chinese exchanges. People no matter where to buy and sell coins.

I think the biggest counter here is when Japan and South Korea adapted bitcoin. They in return made huge turnaround on bitcoin. Trading has just been made better thanks to this 2 countries. Although their were already other countries who adapted bitcoin, they took opportunity in bitcoin while China has banned trading in their country. Each countries has their own reasons for doing such but it changed how bitcoin can influence other nations.

China no longer affects Bitcoin

China will no longer be able to negatively affect Bitcoin price, he has only 1% of the total volume of world trade. Although the future of the crypto market in China remains uncertain, the Chinese government can no longer manipulate the market and adversely affect the price of Bitcoin.

October 16, Professor and head of the Department of economy Panos Mourdoukoutas have suggested that the China market may reduce the price of Bitcoin below $5000.

The Chinese government has banned Bitcoin and cryptocurrencies, limiting trade them. As a result, the trading volume on the stock market of Bitcoin in China has significantly declined, accounting for about 1% of global transactions in the Bitcoin market.

Global stock market Bitcoin already restructured, as trading volumes have moved from China to a more sustainable, regulated and efficient markets such as Japan and South Korea.

The last thing the Chinese government can take is to prohibit the use of overthe-counter (OTC) markets such as LocalBitcoins. But, trading volume on the OTC markets of China considering only trade Bitcoins for about tens of millions of dollars on a weekly basis, which is a small fraction of the global trade volume of Bitcoin in contrast to these exchanges, as Bithumb that handle hundreds of millions of dollars in afternoon trading.

In the medium term, the strengthening of South Korean and Japanese markets, the global cryptocurrency market will be more institutional investors and the price of Bitcoin will continue to grow at a rapid pace. For the last four days the Bitcoin price has increased from $4500 to $6000, registering a weekly gain of $1120.

Knowing China it will be likely to be done by them. They’re trying to control bitcoin in many ways directly or indirectly. They’ve done it by banning exchanges before as a result a 2800$ dip last September but failed. And now if they will make this, it will only target they’re citizens and outside of its country will not be affected. So whatever China does let them be for the reason most us don’t bother to care about them.

I agree with what you're saying, but knowing the chinese government, they're going to botch it and ruin the incentives for decentralized currency lol

Why would the Chinese sell bitcoins for a currency that is completely controlled by the government. I think that would be more profitable to sell bitcoin for dollar on the stock exchanges which are outside Chinese jurisdiction. Then it will be possible to exchange bitcoin to dollar and send to the name in China. I am sure that this scheme will be profitable.

china is one of biggest market of cryptocurency, maybe the goverment made rules, for make sure their people keep safe, tracked.
for long term it will help crypto market

That would be the only way to keep their own currency relevant. Why buy that one when you could get Bitcoins, which would be perfectly legal in this scenario, right? But yeah, I hope they don't get greedy on the fees.

Every government actions will come as a form of soft landing for their own future as well. Although, its still mere speculation but at the same time, I see a possibility in it which means I share in Op's position. Government of India knows by the time they control what you can change bitcoin to and vice versa, they are indirectly controlling where the money goes and comes  from. Even if they cannot control bitcoin they can then control what it can be used for before you can use it domestically.

it seems that your analysis can be correct mate, in order for them to regulate bitcoin in their country they needed to create this coin so those who wants to continue trading bitcoin will be needed to buy the coin first I'm not sure yet if this already been clarified since there's no project yet that's been disscuss
about this new one.

If China legalizes BTC with some regulation, it would definitely be a beneficial call for all BTC users in the long term as there is no fear of being banned. But I don't understand the process they are adopting, it means User in China first have to buy coin X made by the Bank of China, then convert into BTC through exchanges. That means first user will pay fees to buy COIN X then again pay fees to transfer Coin X to exchange and in last fees need to be paid to buy BTC...that is 3x fees to buy and 3x to sell. This plan only is efficient if transaction fees of COIN X  would be negligible.

This should be done in other countries if they dont want to regulate bitcoin. Creating their own coin may take long but at least it a good choice to at least manage funds and to have track on how much is being exported or being importd and converted. Because i do not really believe that chinna would bitcoin seeing it can give major economic help. Good to know that they are still supporters of bitcoin.

If they will still allow bitcoin trading with the currency they create then it would be a win-win situation both for them and for bitcoin because they got what they wanted to create another cryptocurrency and bitcoin is still allowed to be traded in their country. The past month has been a roller coaster ride for bitcoin because of several rumors and news including this China news and we have seen the effect of it to the bitcoin prices but as usual, bitcoin go back up again and reach new high that's why for those people who panic during the dip, they should know first how strong the supporters of bitcoin are to have faith in it rising up again.

The regulations may have a bad effect in the short term but eventually it will have a good effect in the long term as the investors and users of the cryptocurrency are just protected and for bitcoin, it will be free in its bondage to China being influenced in every decision its government makes and continue to flourish without China.

For a reason I don’t have any care for what China will implement for they’re value in bitcoin community is much unrecognised since the uncertainty they’re throwing at September as a result the dip up to 2800$ happen. For the same reason that every regulation and implementation of policy might not be given serious attention by a decentralized bitcoin that from the government.

If they create their own coin then it is they the Chinese community will get the benefit from it. But I don't know if they would allow bitcoin trading with their own coin. If they do then it will be another boost for bitcoin economy. But they will not be reclaim their glory days I think. It will contribute though to the growth of cryptocurrency and the Chinese bitcoin community can still enjoy bitcoin trading against their coin. So we can progress at both ends. However, there's no formal announcement yet. We have to wait and look at how this will evolved. We are now seeing a significant growth without them. But if they choose to enter again, they can still do but they would be getting the #1 spot because Japan has taken over the scene.

Earlier this year, China used to account for 98% of Bitcoin trading volume. Now China only accounts for 20% of the Bitcoin trading volume. Bitcoin is greater than China. Do not panic.

If they do that they risk killing the golden goose for China. Their citizens will have to compete by starting with a buy of a government alt-coin. Good luck with that.
 

I already knew they are heading towards this. What they want to achieve is to have a watch over inflow and outflow of money from fiat to cryptos. By banning exchanges or suspending any other exchange unit, they want to provide only single option for exchanging bitcoin to fiat that is their government owned currency so that they can keep a watch of volume and can possibly track any illegal activity.

I don't understand what's the problem? Well let's say the exchange will not trade for yuan. It is impossible to trade for dollars? Then the dollars can be withdrawn on any account. You don't think that China may prohibit transfers of dollars? It seems to me that all of these rumors is an attempt to create problems where there are none.

The only way this works in the way China wants it to is to stop the BTC from leaving the exchanges. The CNYDT part is the easy bit and already achievable to an extent. Once the BTC is out in the wild the buyer is free and can claim anything happened to it.

That's an interesting situation. If they prohibit yuan and USD to be pair on any cryptocurrecies. I don't think it could affect bitcoin and altcoins directly because people can still be able to trade their bitcoins and altcoins. Actually, it's an advantage for because people will be focusing only on cryptocurrencies since they are not allows traders to trade cryptocurrency to fiat and buy cryptocurrencies with fiat. Anyway, i think people can still use other exchanges from other country like Japan. Why would i trade from chinese exchanges if you can trade with other foreign exchanges like bitflyer. Less hassle. China is full of drama. That's why Japan surpassed China.

I know it's just speculation but I can see why they would do that. It would kind of be like how Bitcoin is your gateway to altcoins. They'll use it in such a way that you have to get some one way or another to be able to trade cryptocurrencies. I don't like it, but it's quite smart.

no china not ban bit coins trading up to now it may going  in the market. actually china people not create any coins they using bit coins for their daily needs and so most of the people believing it is true but it is not correct. china will issue about bit coins and try to giving new exchanges in future.

I just can not understand why China did not take the Chinese NEO coin for use, for example. Why was it necessary to create a new one? It will differ in its special status, that is, will it be more centralized or not? Does this mean that the new coin will only go inside China?

I´m convinced that this rumor is baseless speculation. What advantages would the government have from a cryptocurrency that is pegged to the Yuan?
Here is my opinion on what will really happen:

1. The bans will be strictly enforced and operators will shut down their operations voluntarily
2. China will issue licenses to new exchanges in the future
3. The old exchanges like Huobi that were actually using customer funds in the Chinese shadow banking sector will not receive a license
    (maybe they will be allowed to have crypto to crypto operations without fiat trading pairs)
4. Individual Chinese users, who still want to use BTC will find a way to do so

They have their own rules on how to play in crypto world. Any country can do that, but they are missing bitcoins uniqueness. If there's a ban, there's always a way to unban and be legalize. One day China will learn to embrace bitcoin and cryptocurrency after they realize slight downfall of their economy, I believe that their actions banning cryptos made a huge impact in their economy for sure.

Well, whatever plans the government may have I am just wishing them well and hope that soon Bitcoin can have a free access to the China market rather that they would allow their people to be a part of the Bitcoin bandwagon and not be left behind. Anyway, this is just an speculation as the more that the government is secretive the easier it is to spread ideas and opinions and get caught by the media and other people.

I am sure that the Chinese government is thinking of something on how to integrate Bitcoin and cryptocurrency and yet somehow they can still have some control of. They might come up with stricter rules and regulations for Bitcoin and everybody have to follow otherwise penalties will be imposed accordingly. The recent bans for both ICO and exchanges are just the way the government is exercising controls and showing the whole world that they are the boss.

There is a rumor China will create a coin similar to USDT(Tether). China will ban Bitcoin trading in Chinese Yuan or USD but will allow Bitcoin trading with this coin made by the Bank of China. Again, regulations seem bad in the short term. However, in the long term, this will contribute to the further growth of the cryptocurrency market as this means governments are recognizing cryptocurrencies.

your reactions ??
you are welcome