Has Crypto disappear from China?
Has Crypto disappear from China?
When I first knew about Bitcoin, China used to be one of the biggest players in cryptocurrency with bit coin miners that contribute to 75% of btc supply in the world. I remembered seeing the amount to btc flowing towards China with http://fiatleak.com/
THE CRACKDOWN
At the end of 2017, the Chinese policy began to banned trading of Cryptocurrency in mainland China. Big companies like Huobi and BTCC have to move outside mainland China to operate.
However, according to a leaked memo very recently at January 2 from the ‘Leading Group of Internet Financial Risks Remediation’ — China’s internet finance regulator which initiated the clampdown on bitcoin — bitcoin miners should make an “orderly exit” from China because they have consumed “huge amounts of resources and stoked speculation of ‘virtual currencies.”
In other words, this is no joke, even miners are affected. The CEO of one large mining group has confirmed so
SourceChinese authorities are dead serious about cryptocurrency
According to Quartz, local representatives must report back on their progress of removing miners in their region on a monthly basis. The situation is not as easy as it seems because most of the time, the company collaborate with the local government to boost local economy, especially at places where traditional industries are struggling.
So, do people stop trading??
No. They simply go underground. When there is a will, there is always a way. Bear in mind, that the banned is within Mainland China, meaning that chinese people may choose an alternative method by opening a bank account overseas and store money there and still be able to buy cryptocurrency and trade using international platforms.
on the contrary...
"People have the right to freely participate in bitcoin trading at their own risk.”
How it will affect foreigners?
Assuming you are an expat in China and you earn your income in Chinese yuan, being able to buy btc in Yuan and trade would be a huge benefit. You don't have to convert to USD which will consume more time and face the risk the exchange rates.
CONCLUSION: Will cryptocurrency ever come back to China?
Like the one child policy, nothing is permanent. There is hope, maybe not today or tomorrow but certainly in the future. When specifically? No one can say. but when it is allowed legally, I'm sure there will be people that are ready for it. People in China are already using electronic payment system at a regular basis and they are certainly not new to the whole concept of virtual currencies.
Cheers,
Reena.K
Interesting topic, as there are a lot of bitcoin miners in China. While many will stay underground, this level of enforcement will significantly impact China's market share.
oh it certainly does, but what chinese people do is simply set up a foreign bank account in HK and trade crypto, there is nothing that will stop them
Your wrong the way to stop them is by simply banning more and more miners where a limited supply of bitcoin would flow in the chinese market and slowly people would start selling creating a mass inflation of bitcoin to become "GONE" and then the bitcoin price would surely lower as we know it after all people would sell as they know they can't mine anymore so why not cash out since bitcoin transaction fee is on the rise which would bring the bitcoin price down hugely without any words left to say or see.
That's true, ban or not, if there's a will, there's a way. Crypto is gonna be so big this year.
Con el bitcoin no podrá nadie trataran de detenerlo, pero no podrán.
agree =) bitcoin is unstoppable
I don't believe a government can control something that it's people truly believe in. It will always find a way to surface. They would be best just to direct it rather than ban it. Thank you @asianetwork.
I think China is will develop their own, acceptable blockchains and cryptos. Until then, if they can't control it, it's banned.
gotta agree with you, the keyword is control. Maybe Neo would be part of it since it's from China. There are lots of speculations that China will eventually have its own currencies
Yes, Just like russia they created there own crypto called RMC which is crazy as each RMC is worth about 15 grand and it's hard to sell as it's so expensive and no one will buy so your locked in with that stupid coin and no exchange service would accept it like changelly. In conclusion people bought a coin that is not tradeable because it is a tightly controlled market
Hello @asianetwork, thank you for sharing this update. I hate to listen to the news and rely solely on their perspective. So firsthand knowledge and writing is much appreciated. I also thank you for always supporting my posts and being a great encouragement. I loved this writing and even though I am not always attracted to crypto posts, this one caught my eye for sure. Thank you again for sharing. xx
don't mentioned it, I did find learning different cultures from your post interesting too, hope my comments inspire you to create more posts.
Cheers !!
@asianetwork, i am happy you found my posts informational and i find inspiration within. I feel that is the only way it would work for me.
I rarely get ideas from others, but thank you for that thought. Blessings!
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thank you =)
What are your thoughts on the Government of China’s reasons for doing this?
To control the outflow of capital
China is very strict when it comes to this to avoid exploitation. But when it comes to outflow of capital, the rich are already doing so outside the county by sending their kids outside the country to study, along with amount of wealth. (they tend to buy properties in other countries)
To be honest, i'm sure what I said isn't the main reason, there could be other factors like national security (things that i couldn't imagine)