Behind the bitcoin ban in China

Behind the bitcoin ban in China

Recently, in China came a lot about bitcoin news and rumors. The concern of the investors from Chinese news, including rumors of Chinese regulatory authorities “prohibiting bitcoin transactions”. Then the part of the bank has banned bitcoin exchange bank bitcoin business, the news caused a global investor concerns Chinese regulators nervous, bitcoin’s attitude change, or even prohibit bitcoin.
Then Chinese central bank denied “ban bitcoin” rumors, but the market is still worried about the further action China supervision department. Here, we summarize the recent China bitcoin news and rumors.
The central bank in December 5, 2013 Chinese provisions that prohibit financial institutions to provide services and “third party payment mechanism for bitcoin exchange. Here “third party payment institutions” refers to is similar to the PayPal or egopay of the online payment company, can provide a way to pay outside the bank.
Subsequently, the third party payment companies according to the regulatory requirements, stop bitcoin trading service. It is reported that, due to various problems of the third party payment existence of anti money laundering and financial supervision, the regulatory authorities have banned third party payment bitcoin transaction service.

Although the provisions received regulatory authorities, the prohibition of third party payment companies to provide services for the bitcoin transactions, but because the third party payment companies will charge a lot of fees from the transaction (the transaction amount is about 0.2%-0.3%), so many companies do not intend to implement this provision.
Then Chinese bitcoin exchange has come up with a new way, they issued their own “recharge code” (code), and commissioned another company sales, the third party payment companies to provide services for the company. So investors can buy recharge amount from a recharge code store “, and through the third party payment settlement company. This behavior is actually lied to regulators, and may lead to money laundering and other problems intensified. The provisions Chinese before the central bank requirements bitcoin exchange must be registered on the client identity, to carry out anti money laundering management. But the use of this code will bypass the recharge recharge codes management system — no identity registration, the source of funds tracking becomes very difficult.
Then again before regulators banned this behavior for two weeks, the number of third party payment company received regulatory requirements of telephone, prohibit the sale settlement services for bitcoin recharge code “shop.
A service for the bitcoin exchange in the part of the bank after the ban, investors are nervous to spend. But then a high-level economic forum in April 11th Chinese on the central bank governor Zhou Xiaochuan issued a bitcoin issue, said bitcoin is not banned.
At noon on April 11th, the central bank governor Zhou Xiaochuan in Hainan, Boao to participate in the Boao forum the central bank’s future forum. Hainan Boao forum is a China economy forum, management China political and financial leaders attended the event.
Zhou Xiaochuan said at the forum, bitcoin central bank had not started, not to mention what banned. But Zhou Xiaochuan said he worried that bitcoin is a trading asset, not quite like the currency of payment. Such as stamps and the like, are mainly collections”.
Then the market rose sharply, the central bank governor’s speech Chinese response.
The central bank governor denies ban bitcoin after the market has a certain degree of rise. But the official position did not solve bitcoin in a series of problems Chinese.
The central bank ban on the prohibition of third party payment companies engaged in bitcoin related business is still valid, part of the bank’s attitude is also very tough, in the eyes of many Chinese, bitcoin is still a kind of fraud or deception. There are a lot of people think bitcoin excessive speculation, or there is a risk of crime.
In the last year, the central bank for Chinese bitcoin regulatory requirements that bitcoin is a “commodity”, can be legally traded. The transaction mechanism of customer registration requirements, and anti money laundering supervision. This is considered to be a description of bitcoin legitimacy, but also prohibit financial institutions and the third party payment companies bitcoin related business.
Since this year, regulators attitude is changed. In addition to some bank ban bitcoin exchange account, regulatory authorities also banned the sale again third party payment recharge code. At the same time, some other officials Chinese central bank, such as the investigation and statistics, etc., also published an article criticizing the bitcoin, said it is “not money” or “does not have the function of money”.
In short, in China bitcoin regulatory attitude is still very fuzzy. Chinese authorities do not recognize the ban bitcoin, and substantially limit bitcoin transactions. This gives investors a lot of confusion, they are difficult to understand the real intention of the regulatory authorities, so try to get inside information and all kinds of rumors.
The same situation also occurred in the China stock market, because the information opaque and inefficient enforcement, insider trading behavior of a large number of the Chinese stock market, investors generally believe that a variety of rumors (Chinese bitcoin investors a lot of stock market experience).
At the same time, investors believe that the Chinese authorities and regulators do not trust the wording. In 2007, there are rumors that China will improve the securities transaction tax, then officials denied this. After a week in the middle of the night 12 points, the Ministry of Finance announced an increase in securities transaction tax. This caused serious losses of investors. A recent example of a city is rumored to be restricted to cars, then officials denied, a week after the government introduced restrictions on automobile traffic.
Because bitcoin can not be regulated and decentralized, and challenged the authority of China, many people think that Chinese ban bitcoin transaction the possibility of large. The lack of transparency of policy, the rumor is the only source of information. After all, China in such countries, what may happen.
So on the China whether to ban bitcoin rumors will not stop, unless Chinese really banned bitcoin.
In addition to international investors are very familiar with Asicminer etc. bitcoin mining company, Chinese in Wright currency currency copycat ASIC chips come to the forefront of the world. SFminer.com is a new mining company, this month has just released the world’s first Scrypt algorithm chip, support force, numerical computing tasks Scrypt algorithm with low power consumption. The mine mining digital currency Wright coins and dog coins such as Scrypt algorithm, is now the graphics computing performance is improved by one hundred times. The company has invested millions of dollars in research and development, and obtained the investor orders.
SFminer CEO, Mr Mao Shihang is also the world’s second largest pool of “discus fish” operator, he is confident in the future of bitcoin, despite the policy risk, still insist on this aspect of the business plan. He believes that Chinese has many open than before, but also has a strong academic background of many officials of regulatory authorities, the introduction of the policy will also consider the international influence, not to ban bitcoin transactions.


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