The crackdown on the bitcoin ecosystem represents Beijing’s possibly biggest effort so far to limit expansion of a system to rival the yuan. In a previous crackdown, in 2009, the central bank banned the use of tokens valued at billions of dollars created in China’s massive online-gaming networks for real-world purchases. A quasiregulatory body called the National Internet Finance Association of China (NIFA) warned investors about virtual currency trading in a statement last week and said that bitcoin platforms lack “legal basis” to operate in the country.
A broader clampdown will likely include blocking mainland access to websites of foreign bitcoin exchanges such as Coinbase in the U.S. and Bitfinex in Hong Kong, say people familiar with the matter.
…A lack of clarity from regulators has fueled worries about how far the government will go. One uncertainty, for example, is whether the ban will affect bitcoin deals made over social-messaging apps such as WeChat . People in the industry say a wave of bitcoin users in recent days migrated from WeChat to the encrypted messaging service Telegram.
Industry advocates hail bitcoin for allowing users to transact with each other without the involvement of a central authority. In reality, users access the market for virtual currencies via services and businesses that are centralized in real locations and therefore are susceptible to third parties. Any attempt by China to interfere broadly in the bitcoin network would test that notion further.
…Until now, Chinese miners considered themselves immune from Beijing’s evolving stance on bitcoin trading. One entrepreneur said miners are now worried about authorities moving to limit their operations. “Using VPNs as a workaround will be difficult,” he said, referring to virtual private networks that allow users to circumvent China’s so-called Great Firewall.
Chinese miners loom large in the global bitcoin mining network, also serving an important role in the upkeep of the bitcoin ledger. Potential interference in how they connect to and use the internet could disrupt, at least temporarily, both the creation of new bitcoin and the speed at which global bitcoin transactions are confirmed, say people in the industry.
And more from the Chinese press:
About Bitcoin suspense and other virtual currency exchange outlet of whether to retain the two announced the final, China will bid farewell to the traditional Bitcoin trading platform. In the end of October announced the gradual closure of all digital assets against the RMB after the transaction business, September 16, the fire coins, OKCoin Bank Bank announced the announcement that the next step will stop all about the virtual currency trading business.
The industry said that this means that the currency on the platform to carry out transactions, or to provide information to match the individual between the individual virtual currency trading business, will also be completely stopped. Bit currency in the domestic trading channels are almost all blocked.
OKCoin will stop all business
On the afternoon of September 16th, the announcement on the day before the announcement of the renminbi renminbi business was announced, indicating that the next step would cease all trading transactions with respect to the virtual currency.
Prior to September 15, was considered the largest domestic trading volume of the two special currency trading platform coins, OKCoin currency line by the central bank and other regulators interview, announced the evening after the announcement, to stop the RMB trading business. However, the two trading platforms in the announcement that “only to stop the RMB trading business, the rest of the business is not affected.”
In the two were known as the “benchmark” platform to stop the RMB trading business before the Beijing News reporter was informed that the September 15 afternoon, the central bank and other regulators interview OKCoin, coins and other coins exchange. According to the regulators of the regulators revealed that the current regulatory authorities require special currency trading platform reported shut down the program, allowing the shut down time sooner or later, but will eventually shut down. For risk considerations, the early on-line ICO tokens transactions and other non-standard operation of the special currency trading platform shut down, the rest slowly shut down. Regulatory authorities have also made specific requirements for shutting down time.
Subsequently, the evening, the two platforms issued a notice, the wording is almost the same: 20:30 on September 15, 2021, suspended registration and RMB recharge business; In addition, the two platforms will be September 30 to inform all users about to stop trading , And by October 31, in turn, gradually stop all the digital assets of the RMB trading business. Announcement also pointed out that the two platforms of the currency, currency, cash, between the virtual currency transactions and other business is not affected.
In fact, before the September 14 evening, Bitcoin China announced that it would cease all digital asset trading business on September 30, before the OKCoin Bank announced the closure of all business. Since then, including micro-bit, Li laugh to invest in the cloud network and other virtual currency exchanges have also released a notice to close the trading platform.
The industry: the person in charge of the platform is temporarily not allowed to leave Beijing
“Everything is over, and the only illusion is shattered.” Yesterday, a number of industry sources told the Beijing News reporter, all this with the OKCoin currency line, the two major platforms announced the closure of all business and ended.
The source said, ICO was sentenced to “death”, the bit currency and other virtual currency trading platform has also been retired. September 15 before the industry had fantasy. Although the regulators believe that Bitcoin and other suspected money laundering, illegal fund-raising and other risks, but the regulators have also developed a number of versions of the regulatory program, including “one size fits all” shut down, deadline to close the yuan and other legal currency and bit currency and other virtual Currency free convertible, and even had a version of the proposed reservation OKCoin currency line and the coin network, because the two platforms operating norms, not on-line ICO tokens and so on.
All you’ve got to do is shoot a few folks and that’s the end of it. What anarchists of all stripe always forget is that the government has a monopoly on violence.
Source: Macrobusiness