China To End All Cryptocurrency Trading For the Fourth Time

John McMahon | February 5, 2018 | 2:10 pm

China To End All Cryptocurrency Trading For the Fourth Time

John McMahon | February 5, 2018 | 2:10 pm

Amid fears of Bitcoin bubbles and big money cybercrimes, China vows to put an end to all cryptocurrency trading – foreign and domestic.

Bad News For China

In order to avoid what it saw as a potential financial crisis China outlawed all domestic crypto-trading exchanges in September of 2017. This essentially put an end to the Yuan- Bitcoin exchange once one of the biggest drivers in the market.

Despite the ban, individual investors have continued to trade on foreign exchanges using virtual private networks.

Now new, tighter regulatory practices announced will target just such traders as well as banks and financial institutes that had been funding Chinese based initial coin offerings trading on foreign exchanges.

“I think the new move literally means it would be even harder to circumvent the ban in China…people promoting related business programmes may be arrested,” David Zhao a private investor said.

Good News for Singapore and Hong Kong

Last years initial ban on domestic exchanges saw operators like Houbi and OKCoin move operations to Hong Kong where they morphed into crypto-crypto exchanges whose services were still available in the PROC.

This new ban could spur serious investors to move large amounts of capital to Hong Kong, Singapore and even Japan where cryptocurrency is being embraced as the future.

“It’s positive news for Japan and Singapore because demand for participating in trading is not diminishing and traders have got to go somewhere,” said Ace Yang, executive director of Cathay Capital, a private equity firm based in Beijing.

Closing The Mines

The regulations put in place last year were meant to put an end to Bitcoin mining as well as exchanges. From the onset, China has been competing to be number one in mining Bitcoin and is the largest producer of mining hardware in the world.

Pan Goshang, Vice Governor of the Chinese Central Bank and China’s head internet finance regulator has vowed to put an end to Bitcoin mining in the country. Asking local government agencies to ‘guide’ operations in making an orderly exit from the business.

Measures to end mining including strict regulation of electricity have caused once highly profitable mining pools to raise fees hundreds of percent.

“Pseudo-financial innovations that have no relationship with the real economy should not be supported,” Pan said last month.

What this means to China’s vast markets selling mining hardware to customers who travel from all over the world to buy rigs is still uncertain.

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  • Tee Ng


    China outlawed all domestic crypto-trading exchanges in September of 2017.

  • Tom

    Would you stop all this Fake News, insighting panic in the market?!? This is just mainsteam media making uneducated guesses because they have nothing else to scare people with right now.

  • Why do you keep recycling the same article over and over again. Unsubscribing from the newsletter.

  • kryonix

    Retards stop spreading fake FUD.

  • Steve Stars

    This is good information. I think it shows us how China continually enacts financial disasters upon itself as they obviously can’t make up their minds about bitcoin and the rest. This is how the “COLLECTIVE” mindset in China built a huge high-tech deserted city.
    Bitcoin and the other cryptos offer stability and economic back-up storage the will prove to be essential in the decades to come. In reality, governments NEED the backup of individual monetary accounts to cushion blows from national economic downturns, and banks need to work with this as well. Building another “Great Wall of China” will not work.
    BOTTOM LINE: The nations and people world-wide NEED storage capability via cryptocurrency to help in emergencies related to financial downturns as well as natural disasters,

  • cam

    Fire whoever wrote this FUD article, they obviously one of the other 1000 journalists getting paid to cause fear and panic in investors.

    Shame on you.

    • Zaba

      Reading this brings a smile to my face. Have I have become immune to FUD?

  • Santiago Acosta

    if you know the concept, you wouldnt fear… althought they know too, then they have panic

  • HeartBrave

    if they say go east, and you go west, it will be correct choice

  • HeartBrave

    it remindes me 3 decades ago when physical letters posting were still thriving, look at what’s going on now in China! who actually really uses the postal system any more? we have email, weixin, qq, you name it! Crypto coin will be the same thing as that…just wait and see guyes

  • disqus_CARwRiuTsK

    crypto currencies are all ponzi scheme and hopefully are crushed. i do hope a digital currency eventually takes shape that will reduce transaction costs and get rid of banks as intermediaries that take too much to process a transaction, however, the current structure of these things makes them simply a ponzi scheme. a true crypto will need to arise that is not viewed as a way to make tons of money, but as a reliable, efficient medium of transfer. that means it will need to be able to expand, without inflating or deflating value. a fixed number of coins will never be a reliable “currency”, it is just a ponzi scheme.

    • cadeto_io

      This is an actual question and I am not trolling by any means. I’m curious as to why Crypto’s (namely bitcoin) are considered to be ponzi schemes, when it doesn’t fit the archetype of a ponzi scheme? I hear this a lot but everyone I ask cannot make sense of it. I thought ponzi’s revolved around fraudulent businesses and do not question the currency itself? It’s like saying that the Dollar is a ponzi scheme and Charles Ponzi wasnt the actual scam? I can understand if a “business” that accepted Bitcoin was the ponzi, but not the Bitcoin itself….because that is the mode of currency. Can you explain this, because I am really looking for a straight forward answer?

      • Jim Roof

        You will not get an answer to that question because the person who called cryptocurrencies a Ponzi scheme really meant to say ‘Bitcoin people p1ss me off because they have something I don’t’

        There is a LIMIT to the number of BTC that can be created. Not so with the dollar. That said, the dollar is actually MORE of a Ponzi scheme than Bitcoin.

        But, factually, neither are.

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