China Orders Bitcoin Exchanges In Capital City To Close (bbc.com)

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China Orders Bitcoin Exchanges In Capital City To Close (bbc.com)

Posted by BeauHD on Tuesday September 19, 2017 @10:05AM from the cease-and-desist dept.

An anonymous reader quotes a report from BBC: China is moving forward with plans to shut down Bitcoin exchanges in the country, starting with trading platforms in key cities. All Bitcoin exchanges in Beijing and Shanghai have been ordered to submit plans for winding down their operations by 20 September. The move follows the Chinese central bank's decision to ban initial coin offerings in early September. Top exchange BTCC said it would stop trading at the end of the month. Chinese authorities decided to ban digital currencies as part of a plan for reducing the country's financial risks. All exchanges are required to send regulators a detailed "risk-free" plan of how they intend to exit the market before 18:30 local time on Wednesday 20 September. The regulator also ordered the exchanges to submit DVDs containing all user trading and holding data to the local authorities. Shareholders, controllers, executives, and core financial and technical staff of exchanges are also required to remain in Beijing during the shutdown and to co-operate fully with authorities.

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"But, but, but..." by goose-incarnated · 2017-09-19 10:13 · Score: 4, Funny

"It's different this time!"
*pop*
oh

--
I'm a minority race. Save your vitriol for white people.
1. Re:"But, but, but..." by Anonymous Coward · 2017-09-19 10:29 · Score: 1
  
  More like..
  * Close down temporarily.
  * Update business model to follow Chinese regulations
  * Open for business.
2. Re:"But, but, but..." by Anonymous Coward · 2017-09-19 10:34 · Score: 1
  
  "Update business model to follow Chinese regulations"
  Bribe all the right people.
3. Re:"But, but, but..." by Anonymous Coward · 2017-09-19 10:38 · Score: -1
  
  Your proof???
  Oh yeah, your just spouting shit out your mouth. Time to close it.
4. Re: "But, but, but..." by Anonymous Coward · 2017-09-19 10:56 · Score: -1
  
  Calm down Ying Yang.
5. Re:"But, but, but..." by Anonymous Coward · 2017-09-19 11:01 · Score: 0
  
  The filthy locusts need to buy up all that Vancouver, Sydney, London, Melbourne, Toronto, Auckland property as soon as humanly possible. If there's a will, there's a way. They will get more cash out of that country and they will snap up all and any property that locals can no longer afford.
  If you're middle class or lower, if you *only* own one house? You're getting FUCKED.
  My city is being destroyed by these people, oddly enough my only ally against them is the Chinese government, my government has open arms waiting for more dirty Yuan to come in.
6. Re: "But, but, but..." by Anonymous Coward · 2017-09-19 11:08 · Score: 0
  
  Yes, there's no corruption in China. Just ask the chineese government.
7. Re:"But, but, but..." by Anonymous Coward · 2017-09-19 11:18 · Score: 2, Informative
  
  Proof? 6 of the top 20 richest people in the world are all members of the official "Party" in a country that still claims to be communist? Maybe they don't to deal with the hassle and expense to re-brand their country and relegate any thing referencing to communism to a museum.
  If you want your widgets to be manufactured using slave labor in China you are required to hand over and IP associated with your widget. If you want access to the Chinese market to sell your widgets you will also be handing over all the IP associated with widget in question. And the corporate tax rate in China is 40% which will be applied on any revenue you generate within China. China has damn near eliminated all the trouble and expense of R&D by waiting for others to do all the heavy lifting before stealing the end results. It's a sound strategy so kudos to them for going down the road less traveled.
  The top 9 officials of the "Party" have not only enriched themselves they have practically made their positions hereditary. The US may have a 1% group but China's is more like 0.0001%.
8. Re:"But, but, but..." by Anonymous Coward · 2017-09-19 14:08 · Score: 0
  
  If you didn't fill your post with so much made up crap. People would be more willing to believe the tiny bit thats actually true.
9. Re:"But, but, but..." by Anonymous Coward · 2017-09-19 14:49 · Score: 0
  
  Don't you get tired of constantly telling people that?
10. Re:"But, but, but..." by Anonymous Coward · 2017-09-20 01:26 · Score: 0
  
  If you didn't fill your post with so much made up crap. People would be more willing to believe the tiny bit thats actually true.
  Just give a counter example to what he said already. If you don't, you are just another crap spiller.
11. Re:"But, but, but..." by Anonymous Coward · 2017-09-20 04:51 · Score: 0
  
  i am pretty sure that the chineese pay in american dollars not yaun, the chineese already have more than we do, because we keep buying cheap crap from them at walmart/amazon
So much for free market reforms by Anonymous Coward · 2017-09-19 10:17 · Score: -1

China is getting bad, and I think it probably shows where the USA is headed under current administration.
1. Re:So much for free market reforms by Anonymous Coward · 2017-09-19 10:30 · Score: -1
  
  Apparently you think "money laundering schemes to transfer the wealth of corrupt politicians and businessmen out of China" are some form of free market reform.
  It would be really nice if the US killed off similar schemes, but Trump has made too much from helping Russian oligarchs launder money so I'm not going to hold my breath.
2. Re:So much for free market reforms by youngone · 2017-09-19 11:12 · Score: 4, Interesting
  
  Corrupt Chinese businessmen already have a great money laundering scheme for getting money out of the country.
  Have a look at property prices in Australia and New Zealand, (there are probably other places too).
  Added bonus (in NZ anyway), no capital gains tax.
  Another added bonus, make friends with the right people, and you can be a citizen.
  Nothing suspicious about that though, oh no.
3. Re:So much for free market reforms by Anonymous Coward · 2017-09-19 11:56 · Score: 0
  
  Another added bonus, make friends with the right people, and you can be a citizen.
  Nothing suspicious about that though, oh no.
  In the US, we don't even make you know the right people. Invest $1 million in a new business (or $500K if it is in "targetted employment area") and you get an EB-5 visa. Of course, if you also "know" Jared Kushner, that helps too.
4. Re:So much for free market reforms by Anonymous Coward · 2017-09-19 13:10 · Score: 0
  
  Fuck check out the west coast in the US or Vancouver CA they even made crazy taxes if you weren't living in the house as your main property to stop people from driving it up to a point of unlivable place which only cooled it down for a month before going back up like crazy again. Everyone in china wants to make a cash grab and then get the fuck out.
5. Re:So much for free market reforms by Anonymous Coward · 2017-09-19 13:19 · Score: 0
  
  Sounds like that poor man has suffered far more than he should have to get a citizenship.
6. Re:So much for free market reforms by Anonymous Coward · 2017-09-19 13:46 · Score: 0
  
  many of them are being caught out with that and being forced to sell and/or jailed in China. The smarter ones are doing it through casino's, bitcoin and other avenues that are much harder for them to track. Property purchases by Chinese businessmen are barely a blip on the Australian market, overhyped by those that have a poor understanding of the Australian market.
7. Re: So much for free market reforms by CGordy · 2017-09-19 14:59 · Score: 2
  
  Source?
  Here is a pro property bubble website claiming that Chinese investment into Australia is about 31 billion per year.
  An additional 31 billion into a finite resource increases prices across the board. What is your logic for claiming it has no effect?
  My source.
8. Re: So much for free market reforms by wildchild07770 · 2017-09-19 16:02 · Score: 1
  
  Considering Bitcoin's ENTIRE market cap is equal to only two years worth of Chinese offshore investment in Australia must say something, just not sure what exactly.
9. Re: So much for free market reforms by Anonymous Coward · 2017-09-19 16:11 · Score: 0
  
  You know that they buy the bitcoin and then sell it again to buy the houses right...
  What part of that do you think increases the market cap lol
10. Re:So much for free market reforms by ShanghaiBill · 2017-09-19 17:52 · Score: 2
  
  Invest $1 million in a new business (or $500K if it is in "targetted employment area") and you get an EB-5 visa.
  This is smart policy. We send money to China in exchange for containers full of Walmart merchandise, and then the money flows back into America as investments by Chinese who then become American residents. Win win.
11. Re: So much for free market reforms by Anonymous Coward · 2017-09-19 17:59 · Score: 0
  
  you do realise the Australian property market is a multi trillion dollar industry at this point, 31 billion is nothing.
12. Re: So much for free market reforms by gravewax · 2017-09-19 18:01 · Score: 1
  
  31 billion is tiny in the overall scheme of the Australian market. Even the Article claims the expected drop of $16 billion from the DECLINING chinese investment is unlikely to have much impact
13. Re: So much for free market reforms by CGordy · 2017-09-19 18:21 · Score: 1
  
  The Australian residential property market has a total capitalisation of about 6 trillion. However, on average, properties are held for 10 years (Source), so a good estimate for the yearly turnover is 600 billion. 31 billion (excluding money channelled through tax havens) is 5% of total turnover, which is concentrated in Sydney and Melbourne.
  
  If you add an extra 5% in demand, it will absolutely push prices up by more than that 5%, because people will bid higher to purchase houses.
14. Re: So much for free market reforms by CGordy · 2017-09-19 18:36 · Score: 1
  
  I chose that link because the source (Fairfax) has a vested interest in keeping property prices high and downplaying the impact of Chinese investment (their only profitable division is Domain, their real estate group). Fairfax have a vested interest in downplaying the role of Chinese investment as their business model benefits from high property prices - population pressures in major cities are causing increasing levels of racism in Australia right now, and blowback against Chinese investment could reduce their slice of the money flowing through the property market.
  As I posted elsewhere, the Australian residential property market has a total capitalisation of about 6 trillion, and properties are held for an average of 10 years (Source), so a good estimate for the yearly turnover is 600 billion. 31 billion (excluding money channelled through tax havens) is 5% of total turnover, which is concentrated in Sydney and Melbourne. The decline they are projecting is a wild-ass guess given statistics for the year aren't available yet.
  
  If you add an extra 5% in demand for a finite resource, it will absolutely make a difference to prices, because people will bid higher to purchase houses. Do you have any evidence that it won't; or are you going off gut feel?
15. Re: So much for free market reforms by Anonymous Coward · 2017-09-19 18:58 · Score: 0
  
  Chinese are forced to only buy new properties when purchasing for investment. It has very little impact on the market, especially as they are heavily focused on the million+ property price range.
16. Re: So much for free market reforms by Anonymous Coward · 2017-09-19 19:02 · Score: 0
  
  Australian market is closer to 8 trillion, it was 6 trillion back in 2015. Chinese investors also are only permitted to buy new properties so they have fuck all influence on the market except for the cost of building new.
17. Re: So much for free market reforms by Anonymous Coward · 2017-09-19 22:22 · Score: 0
  
  8 trillion. 6 trillion is a couple of years out of date, so just under 4%, basically insignificant in the scheme of things especially when other factors like government limited land release, low interest rates, high immigration rates are having far greater effect. Also remember the chinese investors aren't buying low and middle priced houses, they are investing in new apartment blocks and new multi million dollar houses, they aren't allowed to buy houses that aren't new.
18. Re:So much for free market reforms by Zontar_Thing_From_Ve · 2017-09-20 00:53 · Score: 1
  
  Corrupt Chinese businessmen already have a great money laundering scheme for getting money out of the country. Have a look at property prices in Australia and New Zealand, (there are probably other places too).
  They've definitely gone up in Hong Kong too, to the detriment of locals. Hong Kong was already a challenging place to live in due to sky high property prices before mainlanders started messing with the local property market. It's gotten much worse in recent years, which some didn't think was possible.
19. Re: So much for free market reforms by Anonymous Coward · 2017-09-20 14:24 · Score: 0
  
  31 billion includes commercial as well as residential property so that is not 31 billion out of the 600 billion spent on houses, it is a much lower percentage
interesting by Anonymous Coward · 2017-09-19 10:18 · Score: 0

Will be interesting how long the current artificial highs that were a direct result of Chinese investment will hold for. realistically this "should" send the price back to sub $1000 region, however the rapid climb has attracted a lot of other latecomers so who knows.
1. Re:interesting by war4peace · 2017-09-19 10:25 · Score: 1
  
  The "crash" started on September 12th its "peak" was on September 15th, when a BTC was traded for a bit below 3K USD.
  It immediately recovered 3h later and had a dip to around 3500 on September 17th. Right now it's being traded for 3918 USD.
  I wouldn't bet on its demise just yet.
  
  --
  ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
2. Re:interesting by hackwrench · 2017-09-19 10:28 · Score: 1
  
  Artificial means man-made. All currency is man-made.
3. Re:interesting by Anonymous Coward · 2017-09-19 10:34 · Score: 0
  
  All value on any items is also man-made.
4. Re:interesting by Anonymous Coward · 2017-09-19 10:43 · Score: 0
  
  Your value is man made
5. Re:interesting by Anonymous Coward · 2017-09-19 10:56 · Score: 1
  
  All value is based on what the two parties think it's worth. At this point the market thinks $4,000 for a Bitcoin is totally worth it.
  And don't whip out Tulips out your ass.. False comparison since Tulips have a shelf-life and no technical use.
6. Re: interesting by Anonymous Coward · 2017-09-19 11:00 · Score: 0
  
  exchange value is just one part of what makes commodities valuable
7. Re:interesting by Anonymous Coward · 2017-09-19 11:06 · Score: 0
  
  Artificial means man-made. All currency is man-made.
  "Artificial" as in with no real substance or value behind it.
8. Re:interesting by gravewax · 2017-09-19 11:10 · Score: 3, Insightful
  
  I would not bet on its demise nor would I bet on it holding its value. The impact of the chinese shutdown is yet to be felt, it will depend heavily on how much dodgy money was being funnelled through bitcoin as a way to hide money leaving china, that impact won't be known for a while yet, nor will the impact of exchanges handing over all the details of buyers and sellers.
9. Re:interesting by rmdingler · 2017-09-19 11:13 · Score: 1
  
  The "crash" started on September 12th its "peak" was on September 15th, when a BTC was traded for a bit below 3K USD. It immediately recovered 3h later and had a dip to around 3500 on September 17th. Right now it's being traded for 3918 USD.
  I wouldn't bet on its demise just yet.
  Yes. The crash to end all crashes.
  It's happened before.
  
  --
  Happiness in intelligent people is the rarest thing I know.
  Ernest Hemingway
10. Re:interesting by rmdingler · 2017-09-19 11:30 · Score: 0
  
  Shelf life?
  I have an ass tulip here that makes seeds that make bulbs for new tulips, every year, plausibly ad infinitum.
  
  --
  Happiness in intelligent people is the rarest thing I know.
  Ernest Hemingway
11. Re: interesting by Anonymous Coward · 2017-09-19 11:31 · Score: 0
  
  Obviously. :)
  Judging just based on the technical merits of cryptocurrencies, specifically the blockchain and related technologies, the value is pretty justifiable.
12. Re:interesting by Anonymous Coward · 2017-09-19 11:59 · Score: 0
  
  Artificial means man-made. All currency is man-made.
  My seashell millions say otherwise.
13. Re:interesting by Anonymous Coward · 2017-09-19 13:00 · Score: 1
  
  I would not bet on its demise nor would I bet on it holding its value. The impact of the chinese shutdown is yet to be felt, it will depend heavily on how much dodgy money was being funnelled through bitcoin as a way to hide money leaving china, that impact won't be known for a while yet, nor will the impact of exchanges handing over all the details of buyers and sellers.
  If the exchanges are closed Bitcoin cannot we cashed out in the Chinese market. That being said, I don't see how this will have any effect on the current price of Bitcoin outside of maintaining it's holding value until those same markets reopen.
  The big "dump" took place after the first announcement in China. At this point however the currency is maintaining its stable value. I don't see any major changes in the near future outside of the value increasing. It's a matter of time I suppose.
14. Re: interesting by Anonymous Coward · 2017-09-19 13:32 · Score: 0
  
  i can imagine a variety of thoroughly useless ways to employ blockchains. implementations of blockchain and related technologies are only as valuable as the sum of their usefulness and how much you can get a sucker to pay you for them
15. Re:interesting by Anonymous Coward · 2017-09-19 13:33 · Score: -1
  
  That's cause he's sure not gonna get made by any *women*
  OK, maybe this one:
  https://www.youtube.com/watch?...
16. Re:interesting by Anonymous Coward · 2017-09-19 13:49 · Score: 0
  
  no, a relatively minor dump happened after the announcement. many are holding onto the hope of avoiding being caught up. China controls around 80% of the bitcoin processing market and a large portion of the total bitcoin held, a serious crackdown by china if it comes will devastate bitcoin.
17. Re: interesting by Anonymous Coward · 2017-09-19 15:31 · Score: -1
  
  So if their are no humans the Universe has 0 value? Interesting...such anthropomorphism has generally led to no good conclusions or insights. I would suggest you look at redefining your definition of value.
18. Re: interesting by Anonymous Coward · 2017-09-19 16:32 · Score: 0
  
  Anthropomorphism? Too broad. The universe has no value without *me*. The rest of you are here for my entertainment.
19. Re: interesting by Anonymous Coward · 2017-09-19 17:04 · Score: 0
  
  Anthropic principle
20. Re:interesting by rtb61 · 2017-09-19 17:24 · Score: 2
  
  This is way, way more than a shut down of bitcoin by the government of China, this is a mass fishing expedition for crimes facilitated by the use of bitcoin. The government of China look set to be making use of bitcoin as a flag for criminal activity and doing major crime data mining to pursue those who have used bitcoin in China to facilitate crime. Depending upon how well they do, will drive how soon other countries follow suit. Way more dangerous than a simply shut down.
  
  --
  Chaos - everything, everywhere, everywhen
21. Re:interesting by Kiuas · 2017-09-19 20:58 · Score: 2
  
  The big "dump" took place after the first announcement in China. At this point however the currency is maintaining its stable value. I don't see any major changes in the near future outside of the value increasing.
  That's because you obviously have not done too much thinking on how money laundering via bitcoin in China works. The best way of getting caught red-handed as someone trying to move money out of country with BC would have been to immediately start cashing out everything you have. That would've caused a large dent in the value of BC and it'd have also meant that it's more likely for your operation to be spotted (don't be naive and think the Chinese are only monitoring exchanges inside their borders).
  The Chinese own a significant portion of all BC currently in circulation. This means if they all decide to cash out and stop using BC the price can come down a lot, but it won't happen overnight because that'd just be a bad move for the investors that want their money out. If the chinese government cannot be persuaded into reversing their policies, it's likely that the Chinese BC investors will start slowly liquidating their BC over the next year(s) which would have a notable impact on the demand of BC globally, thereby affecting its value negatively.
  The fact that no immediate crash was seen after the announcement is not proof that the value will remain stable.
  
  --
  "It is the business of the future to be dangerous" -Alfred North Whitehead
Hear Me Now? by Anonymous Coward · 2017-09-19 10:24 · Score: -1

SELL YOU STUPID KID!
1. Re:Hear Me Now? by Anonymous Coward · 2017-09-19 12:19 · Score: 0
  
  So I can buy.
So who get all the coins? by Anonymous Coward · 2017-09-19 10:32 · Score: 0

nt
Lol by Anonymous Coward · 2017-09-19 10:45 · Score: 0

Even goatse.cx is launching a coin now called goatse coin
Done laughing I guess.... by Anonymous Coward · 2017-09-19 10:56 · Score: 0

and we are into the 'then they fight you' stage
Chinese miners by Anonymous Coward · 2017-09-19 10:56 · Score: 0

What does this mean for bitcoin farms in China? Would they have to close down operations as well?
Bitcoin Miner by wolfheart111 · 2017-09-19 11:56 · Score: 2

Submit a bitcoin miner on dvd to the local authorities... :P

--
[($)]
i dont really like the chinese by Anonymous Coward · 2017-09-19 12:39 · Score: 0

and now I have another reason to dislike them. They don't do much for society do they.
1. Re:i dont really like the chinese by Anonymous Coward · 2017-09-19 16:50 · Score: 0
  
  I know they're completely lazy. They haven't even tried to overthrow any governments recently. USA USA #1 #!
lying scum by Anonymous Coward · 2017-09-19 14:12 · Score: 0

The corporate tax rate for domestic and foreign companies is 25%. Small companies pay 20% corporate tax in certain cases. Hi-tech companies pay 15% corporate tax.
money laundry by Anonymous Coward · 2017-09-19 17:47 · Score: 0

BC Canada has felt the impact of CHINA money laundering......MASSIVE amounts of property being snapped up by CHINA buyers. 500% increase in property values. Same situ happening in Toronto and Aus and everywhere.
CHINA IS A CANCER
BITCOIN IS A FRAUD PONZI SCHEME by Anonymous Coward · 2017-09-19 19:11 · Score: -1

BITCOIN is dead thanks china for killing bitcoin such a fraud Ponzi scheme and destroying the world eating electricity for nothing!!!
51% hashrate now controlled by whom... by Anonymous Coward · 2017-09-19 20:04 · Score: 0

One government entity may now soon be in control of the majority of the bitcoin hashrate. By appearances it looks like over 60% is located within china. Let that sink in for moment...
Your transgender vagina... by Anonymous Coward · 2017-09-19 20:29 · Score: 0

...is man made.
You left out an important detail here: by Anonymous Coward · 2017-09-19 22:47 · Score: 1

The Chinese own a supermajority of the hashing rate on the Bitcoin network. Which means that not long after this crackdown on exchanges happens, we will see the same thing happen to miners, if it isn't already in progress. And that gets complicated when it turns out China isn't shutting down the miners, but rather having them come under government regulation and control, perhaps leading to modified mining software that the Party can use to artificially imbalance the worldwide bitcoin network. This could be done to literally destroy the currency; disrupt the network for purposes of value manipulation, whether rewriting transaction logs, double spending coins, etc.
There are a lot of far more insidious long term purposes to the Chinese crackdown on BTC, but the real concern is that the West is going to follow, at which point virtual currencies will only make sense via dark networks, likely ones that are not using commercial network infrastructure (since it is all monitored now.)
1. Re:You left out an important detail here: by Anonymous Coward · 2017-09-20 04:15 · Score: 0
  
  It is a hostile takeover
Fiat currency by ai4px · 2017-09-20 04:56 · Score: 1

The first rule of a fiat currency is that you must compel people to use it. Even if that means shutting down access to other currencies (china today) or making trading in precious metals illegal (USA, 1933). Bonus points from making the world use your fiat currency (USA 1947), and by the way, you may have to invade other countries of start a few coups along the way to ensure they continue to use your fiat currency.
Really, nothing to see here......