Slashdot Mirror

← Back to Stories (view on slashdot.org)

China To Crack Down on Cryptocurrency Trading Loophole (bloomberg.com)

Posted by msmash on from the further-crackdown dept.

China is opening a new front in its battle against cryptocurrencies, targeting platforms that allow the nation's investors to trade digital assets on overseas exchanges, Bloomberg reported Tuesday citing people familiar with the matter said. From a report: Regulators are planning to scrutinize the Chinese bank and online-payment accounts of businesses and individuals suspected of facilitating trades on offshore cryptocurrency venues, the people said, asking not to be identified because the information is private. The accounts' owners could have their assets frozen or be blocked from the domestic financial system, the people said. The measures are designed to cut off one of the few remaining avenues for Chinese citizens to buy digital assets. While the country was once home to the world's most active cryptocurrency exchanges, authorities banned the venues last year and have since moved to block access to platforms that offer exchange-like services.

41 comments

  1. Re:Children Struggle to Hold Penises by Anonymous Coward · · Score: 1, Funny

    So I go to see my urologist the other day and he tells me "son, you really have to stop masturbating."

    "Why?" I protest to the doctor.

    "So I can examine you."

  2. Wither Nation States by Anonymous Coward · · Score: 0

    A Nation's currency is one of the most tangible aspects of its sovereignty. You mess with it and they will likely respond with the other parts of their apparatus. Namely their law and their might.

  3. Not good by 110010001000 · · Score: 2

    This is a big blow for Bitcoin. It is only up 4% on the news.

    1. Re:Not good by Anonymous Coward · · Score: 0

      Better watch out, that pyramid scheme is going to collapse in on itself.

    2. Re:Not good by 110010001000 · · Score: 1

      I don't think so. Things can only go up. My tulips are worth several million dollars already.

    3. Re:Not good by slazzy · · Score: 1

      As some countries ban crypto currency trading, they actually increase it's value. It's a sign that China will be cracking down more on getting money out of the country, people will be looking hard for ways to buy crypto in China so they get money out. Local Bitcoins anyone?

      --
      Website Just Down For Me? Find out
    4. Re:Not good by Anonymous Coward · · Score: 0

      "people will be looking hard for ways to buy crypto in China so they get money out"
      They better look quietly because the penalties when caught or even just suspected are quite severe in China. And remember China built it's internet infrastructure from the ground up to make it easier for the state to monitor. The fine folks in China do not live under a set of personal rights or protections you find in the US or Europe. Warrants, probable cause, government surveillance, and the whole "innocent until proven guilty" or similar provision play no part in the Chinese legal system.

    5. Re:Not good by Anonymous Coward · · Score: 0

      And that's only 45% down from the highest price it's reached. Clearly bitcoin is the best investment ever and not a volatile as hell gambling game.

    6. Re: Not good by Anonymous Coward · · Score: 0

      Good for them. They keep order in check, those who don't like it - can migrate to America to live with n1ggers.

    7. Re:Not good by phantomfive · · Score: 1

      It's possibly up because Chinese are now rushing to buy it before it becomes illegal. Which means there will be a corresponding drop later on.

      --
      "First they came for the slanderers and i said nothing."
    8. Re:Not good by Anonymous Coward · · Score: 0

      oops now it is down. regardless Bitcoin moving 5, 10 or fuck even 20% in either direction says nothing as it is so easily manipulated by governments or vested interests that you will never be sure of the effect.

  4. How effective is blocking exchanges? by ctilsie242 · · Score: 1

    How effective is blocking cryptocurrency exchanges? To me, this seems like it will work on stopping trade in cryptocurrencies, because they cannot be exchanged for things of real value, unless one exchanges to another commodity via a foreign service, then exchanges that commodity into the domestic country's currency.

    1. Re: How effective is blocking exchanges? by Anonymous Coward · · Score: 0

      Less effective than letting them exit scam

    2. Re:How effective is blocking exchanges? by Anonymous Coward · · Score: 0

      Not very well. There are about 250 countries in the world, and people can always trade with each other for cash, gold etc. Even offline using paper wallets.

    3. Re:How effective is blocking exchanges? by Anonymous Coward · · Score: 0

      Very true, one can trade a currency for a currency, but say I have a bunch of tulips I want to trade for some Jankycoin. I send the tulips out, and through escrow services, receive the Jankycoin. A few seconds pass, and Jankycoin is now selling for 100 times its previous value. I go to a foreign exchange, dump the coinage and have them send tulips back. The government I'm under then seizes the tulips in customs until I have proof that they were paid for in some legit manner.

      So, please tell me how do I convert coins into something other than numbers?

  5. How is this a loophole? by schwit1 · · Score: 1

    The cryptocurrency exchange/system is working as envisioned.

    1. Re:How is this a loophole? by Anonymous Coward · · Score: 1

      Its a loophole on the Chinese law, not on the crypto system. China forbade cryptocurrencies because they can't track the assets (and, to all honestly it does increase a lot of risks regarding money laundering, illegal activities, corruption etc.) but foreign exchanges allowed people to circumvent that law. Thus, its a loophole to that law.

    2. Re:How is this a loophole? by Gravis+Zero · · Score: 1

      How is this a loophole? The cryptocurrency exchange/system is working as envisioned.

      This is a legit question because the answer is that it's a loophole for Chinese law. More specifically, China has several laws that are designed to empower the government to prevent money from leaving China (and thus it's economy). Cryptocurrencies enable people to convert their money into a form that can be electronically transferred then converted back into another currency, completely undermining their efforts to keep wealth inside China.

      --
      Anons need not reply. Questions end with a question mark.
    3. Re:How is this a loophole? by Anonymous Coward · · Score: 0

      They only need to appear to be trying. Their money is based almost exclusively on USD. So they are printing counterfeit USD and work their ass off to keep that peg by shifting their accounting as necessary. When people smuggle money out, it is exporting inflation unofficially. They want their citizens to buy the world and increase their wealth outside of China and do it as secretly as possible.

  6. Bitcoin is a scam! by Anonymous Coward · · Score: 0

    If so-called cryptocurrencies are really good innovation, why they attract so many criminals/criminal activity?
    Could it really be because, all cryptocurrencies themselves are scams, and that is why they attract all kinds of criminals/criminal activity?

    If so-called cryptocurrencies are really currency, why no company/store can use Bitcoin as currency anymore?
    Because the price of Bitcoin proved to be extremely unstable to use as a currency?
    Would the result be different, if Bitcoin replaced by any other "cryptocurrency"?
    Aren't all work the same way?

    Or, they are not actually virtual currency but virtual investment?
    But, if they are actually investment, why we need/want them?
    What would happen to world economy, if people invested in virtual investments, instead of real investments?

    Or, all so-called cryptocurrencies are actually just a modified (made decentralized and paying variable interest) Ponzi Schemes?
    (Price of cryptocurrencies would keep increasing in the long term (by their design), so it is equivalent of paying variable interest to all long term investors.)

    As more and more people invest in cryptocurrencies, it will become harder and harder to ban their trading everywhere!
    All cryptocurrencies need to be banned globally before it is too late!

    1. Re:Bitcoin is a scam! by war4peace · · Score: 2

      I'm going to give you the honorary nickname of "Walking Eagle" - because you're like a bird so full of shit it can't fly.
      Pretty much everything you said is incorrect. Wow.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
    2. Re:Bitcoin is a scam! by Anonymous Coward · · Score: 0

      Would you care to explain what is incorrect and why exactly? My reasons are clearly there for everyone to see and evaluate, unlike yours, I would say.

    3. Re:Bitcoin is a scam! by war4peace · · Score: 1

      Oh sorry but I simply stopped giving a shit, if I see a post such as the entry I previously responded to.
      When someone comes and vomits wrong information all over the place, which can easily be proven wrong with a simple Google search and 5 minutes of attention, I won't spend any time doing the work for them.
      It's common courtesy to enter a discussion with a minimum of knowledge. If you don't show it tough luck. I call what you wrote "retarded" (because it is) and move on.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
  7. Unpossible! by LynnwoodRooster · · Score: 1

    I've been told numerous times that China was not cracking down on cryptocurrencies, that all is Good and Fine with cryptos!

    --
    Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  8. China's manipulation didn't work this time. by Anonymous Coward · · Score: 0

    The last time China rattled sabers over bitcoin there was a significant fall in price. This of course made opportunity for speculation. This time it hasn't happened. I suspect all the suckers were shaken down the last time. Isn't the largest mining activity in China?

  9. Out with the foreign crypto's, in with the Chinese by Anonymous Coward · · Score: 0

    Just like they have their own Google and Facebook equivalents, they want China friendly (read controlled) crypto currencies to dominate there.
    So they have to squeeze out BTC, Ethereum etc, and stop citizens investing on foreign exchanges.
    Next thing though they will loosen up on a few friendly mainland exchanges that have the right conditions attached (state ID etc) and that primarily trade in China friendly coins (NEO, VChain etc.).

  10. Bullshit! by Anonymous Coward · · Score: 0

    Lynnwood liar strikes again. You kept on claiming there were no loopholes fool.

    1. Re:Bullshit! by LynnwoodRooster · · Score: 1

      Proof or STFU. China banned crypto trading inside China; this is now banning it outside China for Chinese nationals.

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    2. Re:Bullshit! by Anonymous Coward · · Score: 0

      Keep moving those goalposts, you may eventually move them far enough to be correct. Not yet though, Keep the FAITH Lynnwood.
      How could trading it outside China not be considered a loophole?

    3. Re:Bullshit! by LynnwoodRooster · · Score: 1

      Thank you for confirming no proof! Good to know my troll doesn't have any facts...

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    4. Re:Bullshit! by Anonymous Coward · · Score: 0

      He showed just as much proof as your 2 posts above...
      LynnwoodRooster never told me China had banned Bitcoins before now. Proof or STFU.

      See how easy it is?
      And if you can be bothered to find any, the other guys proof will be in the posts in the same thread. Good hunting !

    5. Re:Bullshit! by Anonymous Coward · · Score: 0

      You also mentioned 'people dying in Chinese prisons for just using bitcoins' if that helps your search any. Maybe not those exact words though. Good luck !

    6. Re:Bullshit! by LynnwoodRooster · · Score: 1

      Aww troll, you have to do better than that! I posted this link back in December, I believe, and it confirms that crypto exchanges were banned in China. No way to use them - including Bitcoins. And now they're going after overseas use as well. Sucks to be you, troll! See, I have actual facts on my side, you have "trollishness".

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
    7. Re:Bullshit! by LynnwoodRooster · · Score: 1

      I did? Where? So when did you stop beating your wife? How much anthrax did you grow in your lab? Did you finish your latest meth cook?

      --
      Browsing at +1 - no ACs, I ignore their posts. So refreshing!
  11. are you retarded? by Anonymous Coward · · Score: 0

    Every single bit of that is wrong. Since Trump has been in The Chinese Yuan has increased 10% against the falling US dollar. The US isn't even the biggest trading partner for China. Where did you come up with such nonsense?

    1. Re:are you retarded? by Anonymous Coward · · Score: 0

      Where did you come up with such nonsense?

      Slashdot?

  12. clyptocullency by Anonymous Coward · · Score: 0

    bcos they say *clyptocullency*, ror.

  13. China Cant Touch This by Anonymous Coward · · Score: 0

    See Subject: APKoin is better than all other cyypto coin guarantee to not loose value

    Get APKoin by spreading the word of "LORD of HOSTS" to all conrners of teh internet

    Get APKoin by "Kick Stomping Heart" of FAKE name slashdot l[users] who dare defy brilliant APK

    Redeemable for ultra premium moose dik you can suck or take in ass

    Premium rewards like suk my MEGA MAN PENIS or lick my gaint ballz

    APK

    P.S.=> The Soros and ROTHSCHILD backed jew bankers want to destroy CRYPTO COIN because it can derail their plans to enslave great american worker. Trump was the first major disruption to they plans APKoins is the next... apk

  14. easier than I thought by Anonymous Coward · · Score: 0

    Thank you for confirming no proof! Good to know Lynwood liar doesn't have any facts...