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Bitcoin Slides as China's Central Bank Launches Checks On Exchanges (reuters.com)

Posted by msmash on from the china-effect dept.

An anonymous reader shares a Reuters report: China's central bank launched spot checks on leading bitcoin exchanges in Beijing and Shanghai, ratcheting up pressure on potential capital outflows and knocking the price of the cryptocurrency down more than 12 percent against the dollar. The People's Bank of China said its probe of bitcoin exchanges BTCC, Huobi and OKCoin was to look into a range of possible rule violations, including market manipulation, money laundering and unauthorized financing. It did not say if any violations had been found. Chinese authorities have stepped up efforts to stem capital outflows and relieve pressure on the yuan. While the yuan lost more than 6.5 percent against the dollar last year, its worst performance since 1994, the bitcoin price has soared to near-record highs.

3 of 43 comments (clear)

  1. Re:Fuck off, msmash by Baron_Yam · · Score: 5, Interesting

    How is saying, "The price is falling!" going to pump up the price? Perhaps it's a short-n-spread-fud scheme.

    After you pump the price and dump your bitcoin, you want to drop the price so you can buy more low in preparation for the next pump.

    Now, it's unlikely MsMash is a top-level player in that scam, but there are lots of people who want to participate in hopes of enriching themselves.

    Since the market is more or less entirely driven by fraud, this is essentially a guessing game of how far bitcoin will go during its ups and downs, so if you're NOT actually one of the big players who is moving the market through exchange fraud or controlling large amounts of bitcoin, you're probably not going to do very well... which seems to make them try all the harder.

  2. This is a Story about China, not about Bitcoin by Anonymous Coward · · Score: 5, Interesting

    Last couple of years have seen the wealthy in China resort to more and more elaborate schemes to exfiltrate their wealth, which they are officially restricted to moving just $50K/yr.

    Like suitcases of cash brought on "vacation" to Hong Kong

    And buying a $170M painting on a credit card.

    Bitcoin is just the current fad for circumventing foreign exchange restrictions. When China clamps down, the wealthy will move to some other method, and bitcoin pricing will probably collapse.

  3. Re:Fuck off, msmash by Anonymous Coward · · Score: 0, Interesting

    If that is so, why does BTC always keep rising? It will be at $10,000/coin soon enough.