China is clamping down on cryptocurrency, that much is clear. But pboc china bitcoin ban rumors and unofficial leaks, uncertainty over the future of bitcoin in China prevails.
Ready to start building Dapps? Dive deep into blockchain development. Is Bitcoin a Good Investment? But while the developing story dominates headlines, a notable trend is the lack of official information. Chinese officials seem to systematically decline requests for comments, local sources are willing to provide information on condition of anonymity only, while leaked documents remain unverified. Despite this lack of clarity, here’s what’s known so far.
The most important thing we know for sure is that Chinese bitcoin exchanges will be closing down, or at least exiting China. BTCC — the oldest bitcoin exchange in the world — was the first exchange to announce they’d be closing shop within the Asian country, by the end of this month. ICOs, as its reason for closing down. Other exchanges quickly followed BTCC’s lead. Chinese exchanges, announced they would be shutting down too, though not until the end of October. While the cited guidelines initially did not seem to concern bitcoin, it is likely that Chinese officials have made it clear through separate channels that they do apply to the cryptocurrency.
As far as official statements go, Bitcoin itself is not banned in China. Owning, using, and — most importantly — mining bitcoin should technically not be affected by the published guidelines. Songcheng was quoted to have said that Bitcoin poses a challenge to China, mentioning money laundering and its potential to curb the nation’s economic policy. Furthermore, very recent reports indicate that cryptocurrency exchange operators are currently not allowed to leave Beijing.
Trading bitcoin via dedicated exchange platforms in China is off the table for now — that is clear. But it’s not yet clear how successful a full Chinese Bitcoin blockade could be. As such, banning individual Chinese citizens from owning and using bitcoin might prove difficult, even if exchange platforms close down. Perhaps an even more important question is what will happen to Bitcoin mining: It’s likely that most of Bitcoin’s hash power is currently situated in the Asian country. ViaBTC CEO Haipo Yang, it’s unclear if this connection will be allowed for much longer. In the past, such concerns have simply been a prelude to stricter regulations by local authorities.
It has been suggested by Bitmain CEO Jihan Wu, perhaps a bit optimistically, that exchanges will simply require a new license to continue operation. This would allow the central bank to better track the flow of funds in and out of bitcoin in order to counter money laundering and capital flight. Please check your inbox to confirm your subscription. We are always looking for talented writers to join our team.
9345795 L0,0 L0,0 Z M32. Over the past week, inaccurate news regarding the supposed ban on Chinese bitcoin exchanges in mainstream media outlets in China and the US including Caixin, the WSJ and Bloomberg have shaken the bitcoin markets. While some analysts have speculated that the baseless criticism from JPMorgan Chase CEO Jamie Dimon led to the minor downturn, bitcoin experts including Blockstream CEO Adam Back stated that attributing the decline to Dimon’s statement is far-fetched, mainly because Dimon has continually criticized bitcoin since 2014. I doubt Dimon had any impact.
What Will Happen to Chinese Exchanges? Chinese cryptocurrency exchanges have no legal authority to operate at the moment, and that exchanges have received many warnings in the past. In the near future, regulators intend to release a licensing program to provide Chinese exchanges with a properly regulated ecosystem in which to operate. Hence, in the upcoming weeks, Chinese exchanges will likely face stricter regulations and policies, but will not be banned or suspended. From a regulatory standpoint, the Chinese bitcoin exchange ban rumors could positively affect Chinese exchanges moving forward, as the government will prepare a set of regulatory frameworks granting local trading platforms legal status and authority to operate within the country.
Leading exchanges like Huobi, OKCOin and BTCC, the three largest bitcoin exchanges in China, will likely be eligible to file for a license if and when the Chinese government officially introduces its new set of regulations for the bitcoin and cryptocurrency exchange markets. NIFA, PBoC, local financial regulators and regional news publications have clarified that bitcoin is not illegal and that the government is planning on providing a licensing program for bitcoin exchanges in the upcoming months. However, as of now, Chinese financial regulators are focusing on providing stricter regulation and licensing programs to exchanges, not imposing a nationwide ban on bitcoin exchanges. Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies. 3,000, as China closes down local cryptocurrency exchange BTCChina with fears of more to come, while JP Morgan boss Jamie Dimon savaged the digital money.