Topic: Joint statement by 5 chinese exchanges (they will keep operating) (Read 2234 times)

Still not getting your point.  China gov't doesn't recognize bitcoin as a currency, they recognize it as property, aka collectibles, aka "goods".  So you should be able to "buy" them with Yuan any way you wish.

So what does this mean? People will buy miners with Yuan sell them for BTC to exchange?

That's not a bad description of China's exchange controls. If you're in  China, and you want to sell goods for dollars, that's fine with the PBOC. You can then exchange your dollars for yuan, if you so desire. That's also fine with the PBOC. If you have yuan in China, and you want to buy something from outside China with yuan, you can do that; import duties may apply. The receiving party can then buy things from China in yuan. They may be able to convert yuan to dollars in Hong Kong.

The key point is that this is tied to goods shipments. China encourages exports, and isn't that hostile to imports. Those are OK. Pure money transactions are subject to capital controls. Part of the purpose of this is to favor doing real business in goods over pure financial transactions.

You can legally own bitcoin.  You can legally obtain bitcoin in exchange for goods and services.  You don't need to buy bitcoin with dollars.  That's how money is supposed to work.

You can legally own dollars.   You can legally obtain dollars in exchange for goods and services.  You don't need to buy dollars with bitcoin.  That's how money is supposed to work.

Yep.  That about sounds like China...

that country is too strict, even if you want to send your money abroad, you have a limit per year
idk how chinese yuan system operate
i hear they have two types of currency, CNH and CNY
is easy for chinese mainland to exchange their CNY to CNH?

Whatever hurts the Chinese exchanges, can only be good for BTC in the West in the long run.

Well glad to hear the Chinese will keep operating their exchanges
Just hope the price doesn't jump to crazily at the implied threat of banning it every other week

I think it will help with volatility on the Chinese exchanges.

According to the Bloomberg article they are going to stop all margin trading, short selling and add fees.  

http://www.bloomberg.com/news/2014-05-06/china-s-bitcoin-exchanges-pull-out-of-summit-after-pboc.html

Cutting off the fiat flow, adding fees and no margin buying/selling should drive down the volume down. I am not familiar with the business model for the Chinese exchanges, but I am assuming their revenue model was based on commissions on margin trading and short-selling. The question is will the fees they will now charge be enough to be profitable?

So they said that bitcoin is legal to own, but a) You can't buy any with a bank account and b) exchanges are not legal to operate.

WTF?? Seriously? Does. Not. Compute.

PBOC: "You can legally purchase and own bananas, just not purchase them with your bank account.  Or from a store.  Or from a produce stand.  Or from anywhere, actually."

Is there really no one on this forum that can translate these Chinese documents into readable English? It seems whenever a statement is released in Chinese that it raises more questions than answers.

they never said exchanges are legal to operate. 

Ok, here's my 2c (yeah I know, worthless).  

I'm imagining that at some point in the near future, possibly even this year, the Chinese Exchange operators KNOW there is going to be another BTC bubble.  In fact, they are terrified that there indeed will be.  And when it happens, they know that because of their PBOC restrictions it won't necessarily be the Chinese traders initiating it, because all bank accounts will be cut off.  If the majority of bitcoin eventually gets into the hands of everyone *except* the Chinese, then a speculative bubble in future won't be their fault, i.e., necessarily caused by them.  BUT, the Chinese Gov't and PBOC will assume that it *was* the fault of the Chinese Exchanges, and they will place the blame at the feet of the Chinese Exchange operators for not some how "stopping it from getting out of control".  Such is the arrogance of the Chinese Gov't to think that their people control the majority of the bitcoin in the world, when that may not necessarily be true.

My guess is the net result will be the Chinese Gov't and PBOC exacting even more extreme measures, perhaps even shutting down Chinese exchanges completely.  But that would be in direction violation of their December 5th decree that bitcoin is not illegal to own/purchase and that Chinese Exchanges are able to legally operate.

I like to think of this as "Joint statement by 5 chinese exchanges" because whoever thought this was going to work must have been high.

I don't think this is correct. I think it means that the exchanges can no longer offer leveraged trading or loans, with an overall idea of taking the gambling aspect away.

Baidu:
To comply with the policies and regulations, operation trading platform in the framework of legal compliance, before the end of May 10th the new financing currency, stop lever transactions in all financing or money repaid after thawing

Youdao (much better than google):
Abide by the policies and regulations, operating in the framework of legal compliance trading platform, stop before May 10th new borrowing money, after all financing or melt money paid stop leverage trading business

Edit: It's stopping both loans and deposits. 存 and 贷款

This is basically the same for us in the west @ various levels

i.e many banks have BANNED bitcoin and at best it is on a case by case basis...so welcome to reality china

No one is going to be allowed to legally trade yuan for bitcoin in a country where you can't even freely convert yuan to USD.
bitcoin in China is dead at least until bitcoin is as mainstream as visa or the Chinese grab their dear dictator leaders by the collar and throw them in jail.

LOL, great summary

Yeah, I asked about it in another thread - in your wording, it sounds as fee will be introduced in some distant future? after discussing them, etc?

The title of the thread is misleading. Nowhere is there an indication that anything has changed in that they will be able to keep operating or not lose deposit methods, etc.  No statement has been made by the PBOC or any chinese authority about this. It is entirely a creation of the exchanges themselves.

No more scumbag fake volume? Yes please.

It basically means "please don't shut us down, we will be a good boy from now on".

Yes, unless there is some alternate meaning lost in translation, this is not good news.

OK - so what "stop financing new financing currency after currency to pay off all of the facility or stopping leveraged finance trading operations" means? Does that mean that they will stop receiving funds and only let people trade with the money they already have on the exchanges?

I guess that jump today was because of this statement - but if it means what I think it means - then it is in fact bearish.

http://www.coindesk.com/five-chinese-exchange-ceos-pull-out-conference/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CoinDesk+%28CoinDesk+-+The+Voice+of+Digital+Currency%29

http://www.huobi.com/news/index.php?a=show_notice&id=357[1]
https://www.okcoin.com/t-1008656.html[2]

Google Translated:
Bitcoin trading platform self-declaration
Time: 2014-05-06 13:38:51 Source: Fire coins Network [Huobi]
Will Bitcoin enthusiasts:
From 2009 Bitcoin birth, because of its innovative thinking, math and beautiful design, Bitcoin has developed in the world, many people think that bitcoins as a payment technology that can improve efficiency and reduce costs. Regulatory agencies around the world out of respect for innovation, given Bitcoin suitable for development, China's regulators are also very wisely gave Bitcoin relatively tolerant regulatory environment, and propose their own risk in the five ministries jointly file the case can be traded freely bitcoins.
However, we also see there are some problems bitcoins in China's development, such as prices rose too fast, making the manipulator, the risk of lack of retail tips, etc., has led to the emergence of a number of small investors lost. As Bitcoin trading platform , currently appears on various issues, we do not shirk responsibility. Currently fire coins network, bitcoin China , OKCoin, CHBTC, BtcTrade five trading platform through deep reflection and discussion, decided to take a self-consistent action to promote positive development of Bitcoin.
Our joint commitment:
1, do Bitcoin transaction risk prompts to guide public investment concepts normal
2, do not participate in large marketing organizations and the nature of Bitcoin meetings or gatherings, meetings and lead the industry in the direction of technology development and application of innovative
3, compliance with policies and regulations, in the framework of the operation of legal compliance trading platform before May 10 to stop financing new financing currency after currency to pay off all of the facility or stopping leveraged finance trading operations
4, to curb excessive speculation and protect small investors, for a certain fee levied on high-frequency trading, the five trading platform will then discuss a unified rate
5, to promote transparency in the process of trading platforms, control clearing, settlement risk link
6, comply with the requirements of relevant state departments, strict real-name system certification, tracking suspicious transactions and perform anti-money laundering obligations feedback
7, establish and improve the information disclosure mechanism, so that investors have full right to know
8, regularly take the initiative to report the latest developments in the industry, the risk to the competent authorities, etc.
The following five Bitcoin trading platform for voluntary compliance of the agreement, and agreed to strengthen consultation and actively promote open and transparent Bitcoin transaction, so that bitcoin healthy development in China, and accept the supervision of the parties.
Joint Statement Members: Fire bitcoin currency network [Huobi] China OKCoin CHBTC BtcTrade
Fire currency net May 6, 2014
Attachment:
Charge service fees on high-frequency trading and closed financing currency financial service description