China’s Crypto Ban Surprisingly Effective

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legendary

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Quote from: SnowAugustine on August 12, 2018, 10:55:32 AM

That just had me think for a moment, what about offshore yuan limitations? If China bans all other exchanges, then they're effectively limiting capital flight, aren't they? Because I thought each citizen has a limit for how much yuan they can exchange per year to prevent it all going out of the country into foreign property, gold, dollar, bitcoin, etc.

Technically there is an annual $50,000 limit to what people are able to move out of the country, but in reality due to various restrictions and how banks are instructed to work against foreign capital transfers, it's likely well under $10,000. People however don't necessarily need to transfer capital to foreign countries in order to buy into Bitcoin. It's pretty similar to how drugs get smuggled in the country. There are so called Bitcoin mules (mostly from neighbour countries) entering with Bitcoin and shortly after leave with cash.

Quote from: SnowAugustine on August 12, 2018, 10:55:32 AM

So if they're permitting a select few to operate, it means that they are letting their citizens use bitcoin, under certain circumstances. They'll probably collect additional tax on it or something.

I don't think they collect tax since it's legally prohibited to use crypto in combination with fiat, but it would be great if someone from China could add some valuable input when it comes to why these exchanges are allowed to operate.

SnowAugustine

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Quote from: 1Referee on August 11, 2018, 01:45:14 PM

Quote from: gentlemand on August 11, 2018, 12:47:23 PM

They certainly can ban portals that allow interaction with fiat which is enough to deter enough people.

Interesting is how the Chinese government is granting Huobi and OKEx enough room to remain operational in large parts of China. It seems that getting rid of the CNY trading pairs is enough to no longer be hit with harsh regulations. This could directly explain why these exchanges have managed to regain their dominant position in Asia and basically the entire world.

The only weird thing is how other exchanges are forced out almost entirely, but Huobi and OKEx not. I have been suspecting these exchange of having high ranked government officials in their board, and when they continue to be granted plenty of freedom over any other exchange, which is the case time on time again, it's no longer coincidence anymore. Perhaps this is China's way of 'taming' the market to a certain degree.

That just had me think for a moment, what about offshore yuan limitations? If China bans all other exchanges, then they're effectively limiting capital flight, aren't they? Because I thought each citizen has a limit for how much yuan they can exchange per year to prevent it all going out of the country into foreign property, gold, dollar, bitcoin, etc.

So if they're permitting a select few to operate, it means that they are letting their citizens use bitcoin, under certain circumstances. They'll probably collect additional tax on it or something.

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legendary

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Quote from: gentlemand on August 11, 2018, 12:47:23 PM

They certainly can ban portals that allow interaction with fiat which is enough to deter enough people.

Interesting is how the Chinese government is granting Huobi and OKEx enough room to remain operational in large parts of China. It seems that getting rid of the CNY trading pairs is enough to no longer be hit with harsh regulations. This could directly explain why these exchanges have managed to regain their dominant position in Asia and basically the entire world.

The only weird thing is how other exchanges are forced out almost entirely, but Huobi and OKEx not. I have been suspecting these exchange of having high ranked government officials in their board, and when they continue to be granted plenty of freedom over any other exchange, which is the case time on time again, it's no longer coincidence anymore. Perhaps this is China's way of 'taming' the market to a certain degree.

gentlemand

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Quote from: Amyotocta on August 10, 2018, 07:30:04 AM

China did not ban cryptocurrencies at all. They are one of the biggest players in the whole market. Chinese goverment supports chinese projects like NEO, VeChain and other. The only thing they banned were ICO's as far as I remember.

Did you not notice the complete ban of centralised trading? No one can ban a cryptocurrency. They certainly can ban portals that allow interaction with fiat which is enough to deter enough people. P2P can't be stopped but they're not going to care all that much about the people who stick around no matter what.

longyenthanh

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Quote from: Amyotocta on August 10, 2018, 07:30:04 AM

China did not ban cryptocurrencies at all. They are one of the biggest players in the whole market. Chinese goverment supports chinese projects like NEO, VeChain and other. The only thing they banned were ICO's as far as I remember.

It is like that but for me it is even impossible for China to make that big move cause it could just hit so many supporters who live in this country.

Amyotocta

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China did not ban cryptocurrencies at all. They are one of the biggest players in the whole market. Chinese goverment supports chinese projects like NEO, VeChain and other. The only thing they banned were ICO's as far as I remember.

Zohina

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Quote from: hacekd on July 13, 2018, 09:41:25 AM

cryptocurrency transactions in recent years become booming in China. Many investors are turning to the Bitcoin market, increasing demand. So that's the reason to close the crypto transaction as an effort to anticipate the potential risks that arise in the future.

I think the steps taken by China are very reasonable, besides the state is studying the circulation of cryptocurrency currencies, but also is preparing the next step maybe by applying taxes or other regulations, but the Chinese can also prepare their own krypto currency, because they see tremendous potential, the government must have seen this potential. They certainly do not want to be left behind from Japan, America and other developed countries, so we are waiting for the next ten years, if we do not want to be left behind then we have to adjust the progress of digital exchange equipment to replace the eye existing conventional money.

izanagi narukami

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Quote from: Indrawan77 on August 08, 2018, 06:18:40 AM

I don't think China is going to be competitive in crypto, for sure the government will used all of its power to shut down crypto and ICO, from the history we already know that China's government always want to gain control and won't let anything unsupervised, and since crypto still small, the government still got the ability to shut down all the crypto activity

Remember China's popularity may become the advantage. They can trick the government by against the law because AFAIK they will do it for profit.
They won't be easily surrender against government.
The progress will keep increase , slowly but sure !

Kemarit

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Quote from: 7Dyoknga5 on August 07, 2018, 06:55:37 PM

China's population could play a big part in bitcoin's success. Hollywood movies aims for Chinese audience to get their expected gross income and follow China's condition before it could be shown into their country. (Have you noticed that there are a lot of Chinese characters in Marvel movies?)

Once government decided to support foreign products/services it could probably be a success as they have a great number of consumers.

Well its shows in the early years of bitcoin when the Chinese government wasn't putting a hard stance against bitcoin. The Chinese can freely trade bitcoin that's why it was able to survived in the beginning. But since last year, we have seen the effect, although they can do P2P, but without any exchange to trade, the Chinese government hostility towards bitcoin was effective IMHO. Regarding bitcoin mining, we can only speculate that it will be the next target, as Bitmain has making a lot of expansion in the last couple of months. It may have something to do with the Chinese Government aiming at bitcoin mining and probably on their radar and the next one to take a hit.

SnowAugustine

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Quote from: magneto on July 12, 2018, 06:53:38 PM

Firstly, China did not ban bitcoin or crypto. It's still completely legal for people to hold bitcoin and crypto, and trade it P2P. It's not like all of a sudden access to bitcoin is blocked. The Chinese government has simply disallowed exchanges and ICOs to exist within their economic boundaries.

There is a clear distinction between a bitcoin ban, and a bitcoin exchange and ICO ban.

Is it effective at discouraging people from using exchanges to buy bitcoin and invest in ICOs? Probably. But alternatives are popping up such as Localbitcoins that people are using, and no doubt, savvy investors will continue to invest in ICOs anyways.

Quote

Can China remain competitive in the crypto world while it is so isolated?

It can. we don't know if the Chinese government is going to protect its local crypto projects in the future, but if it does, they will remain competitive.

Yes, it's just the operation of exchanges that they were targeting. The big fish.

The Chinese are professionals at circumventing the government. They'd never do it blatantly because they know that their government doesn't appreciate such activity, but they can certainly find their way around regulation and slip through the cracks. The limits on capital flight from the country hasn't stopped them in the past. They'll just have to take one more step to get into crypto.

Kingofbitcoin12345

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Quote from: FXTradingPro on July 12, 2018, 01:17:37 PM

China has seen a great deal of success when it comes to its crypto ban. It has blocked access of exchanges to its citizens and removed all of the Chinese exchanges. It has also access to ICOs. Can China remain competitive in the crypto world while it is so isolated?

https://forexmarketslive.com/chinas-crypto-ban-surprisingly-effective/

I doubt any of those really matters.. China have done enough to hurt the crypto world because of its selfishness and greed to isolate or control the market by any means and have done it to its people and investors within.. I won’t assume Chinese investors been happy with that or forcely complying on such policies..

Competition in crypto world will remain and China has no relevant reason to stay..

Indrawan77

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I don't think China is going to be competitive in crypto, for sure the government will used all of its power to shut down crypto and ICO, from the history we already know that China's government always want to gain control and won't let anything unsupervised, and since crypto still small, the government still got the ability to shut down all the crypto activity

yndye

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Quote from: Flor1982 on August 06, 2018, 11:27:25 PM

Well, expect big from the nation which is one of the super power of the world thru their military and economy, that they have also their own version of advance technologies that far superior than other nations in the world, that if China survived of having their own internet and websites, then how much more in crypto currencies in which they have ensure that all investments are purely legal and purely will benefits the Chinese people?

Well, they are successful in having their own version of those famous sites because they don't want to just adopt something but they wanted to make their own. It would be the same for cryptocurrencies as well that they wanted to isolate it because they wanted to control their people. I don't think that Chinese stop there though because they can still do something about it like having a VPN perhaps so they can still have access to cryptocurrency or if they really wanted to have a legal standing in it then they can go to neighboring countries wherein cryptocurrency is legally recognized.

7Dyoknga5

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dApps Development Automation Platform

China's population could play a big part in bitcoin's success. Hollywood movies aims for Chinese audience to get their expected gross income and follow China's condition before it could be shown into their country. (Have you noticed that there are a lot of Chinese characters in Marvel movies?)

Once government decided to support foreign products/services it could probably be a success as they have a great number of consumers.

Flor1982

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Quote from: FXTradingPro on July 12, 2018, 01:17:37 PM

China has seen a great deal of success when it comes to its crypto ban. It has blocked access of exchanges to its citizens and removed all of the Chinese exchanges. It has also access to ICOs. Can China remain competitive in the crypto world while it is so isolated?

https://forexmarketslive.com/chinas-crypto-ban-surprisingly-effective/

Well, expect big from the nation which is one of the super power of the world thru their military and economy, that they have also their own version of advance technologies that far superior than other nations in the world, that if China survived of having their own internet and websites, then how much more in crypto currencies in which they have ensure that all investments are purely legal and purely will benefits the Chinese people?

Ozero

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Quote from: FXTradingPro on July 12, 2018, 01:17:37 PM

China has seen a great deal of success when it comes to its crypto ban. It has blocked access of exchanges to its citizens and removed all of the Chinese exchanges. It has also access to ICOs. Can China remain competitive in the crypto world while it is so isolated?

https://forexmarketslive.com/chinas-crypto-ban-surprisingly-effective/

In order for China to be competitive in the field of crypto-currency with other leading states in this field of activity, it is necessary that it constantly interacts with other countries. For now, we see that China protects itself from other states and prohibits the use of decentralized crypto currency in their country. However, at the same time, blockchein technology is being introduced into practice at a much faster pace than in other countries. It seems to me that they do not deny the crypto currency as such, but they are looking for their own ways of using their types of crypto currency. China is still experimenting. It should be recognized that such a special approach of this country in many cases was crowned with success. It is necessary to watch very carefully what happens to the crypto currency in China.

Faeton

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If China isolates itself from the rest of the world in the field of crypto currency, it is unlikely that it will remain competitive. Undoubtedly, he will lag behind in this area. Of course, if there will not earn their kinds of crypto-currency and will not launch them into circulation. If this does happen, then the experience of China will be even very useful to us.

jaocoincrypto18

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Quote from: FXTradingPro on July 12, 2018, 01:17:37 PM

China has seen a great deal of success when it comes to its crypto ban. It has blocked access of exchanges to its citizens and removed all of the Chinese exchanges. It has also access to ICOs. Can China remain competitive in the crypto world while it is so isolated?

https://forexmarketslive.com/chinas-crypto-ban-surprisingly-effective/

No wonder as China is the one of the world superpowers in talking of economy, military and technology that even FB and Google have their own versions so it is a wise moved by setting first the ICO that will possibly to connect into their local exchanges and internet to be away from the public thru blocking the path so that their persistent Chinese people can no longer access them after the government announced the ICO ban.

Argoo

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Quote from: ruthbabe on July 12, 2018, 09:38:35 PM

Quote from: FXTradingPro on July 12, 2018, 01:17:37 PM

China has seen a great deal of success when it comes to its crypto ban. It has blocked access of exchanges to its citizens and removed all of the Chinese exchanges. It has also access to ICOs. Can China remain competitive in the crypto world while it is so isolated?

https://forexmarketslive.com/chinas-crypto-ban-surprisingly-effective/

I think that's fake news. Bitcoin and cryptos usage in China was never banned, what China banned are ICOs and shutting down of all exchanges. Cryptocurrency mining is still ongoing in China, and they're the number one seller of ASIC hardware worldwide.

I recently read that China has developed a two-year plan to completely ban decentralized crypto currency in its territory. The first stage of such a plan expires in June next year. An appropriate topic with a link is available in the news section on this forum. All the same, they decided to prohibit the crypto currency. If this happens, China will be completely isolated in terms of crypto currency from the rest of the world. It is a pity that such a large country with huge crypto-currency potential and such human resources will be kept out of the general development.

hacekd

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cryptocurrency transactions in recent years become booming in China. Many investors are turning to the Bitcoin market, increasing demand. So that's the reason to close the crypto transaction as an effort to anticipate the potential risks that arise in the future.

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