you should also remember mtgox, what will happen when you cant withdraw money from exchange eh? Sounds familiar?
According to that 'fud' news chinese investors will have till spring festival to withdraw their funds from the exchanges, from what i can decrypt on google translate. So it won't be similar panic buy if ever this news is confirmed..
So what would this mean? No more chinese investors?
Is that worse case scenario?
Because I don't think that's such a horrible thing. Always seemed short lived to me.
I'm not really sure it will be much of a big deal except for this initial scare and sentiment.
If true, it probably means no more institutional investors from within China. But meh.. big institutions do work with foreign banks. They can find a way if they want.
And the same goes for regular people. There is a black market for USD. There will be a black market for BTC.
So.. basically.. just sentiment. Those who wanna get BTC will find ways.
Selling is not a problem either. Big guys sell in foreign markets. For small guys, there will be local demand (in LocalBitcoin style).
This is basically how Argentina works.
