
Reports: Chinese authorities plan to shut local Bitcoin exchanges - timqian
http://www.zerohedge.com/news/2017-09-08/bitcoin-crashes-massive-volume-china-plans-shut-local-exchanges
======
chollida1
Full article with google translate

[https://translate.google.com/translate?sl=auto&tl=en&js=y&pr...](https://translate.google.com/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Ffinance.caixin.com%2F2017-09-08%2F101142797.html&edit-
text=)

As usual Zero Hedge has written on this, this morning.

[http://www.zerohedge.com/news/2017-09-08/bitcoin-crashes-
mas...](http://www.zerohedge.com/news/2017-09-08/bitcoin-crashes-massive-
volume-china-plans-shut-local-exchanges)

China is really focusing on monetary policy of late, they are also trying to
make the Yuan fall against the dollar.

[http://www.zerohedge.com/news/2017-09-08/yuan-tumbles-
after-...](http://www.zerohedge.com/news/2017-09-08/yuan-tumbles-after-
beijing-gives-speculators-green-light-short-currency)

~~~
dang
OK, we've changed the URL to that last one from
[https://wallstreetcn.com/articles/3029742](https://wallstreetcn.com/articles/3029742).
If someone suggests a better URL, we can change it again.

Submitters: although we have deep respect for other languages, HN is an
English-language site.

~~~
davidgerard
there's got to be a better site for anything than Zero Hedge, that alone will
bury this.

~~~
dang
If there isn't a better link, it's likely a bogus (a.k.a. exaggerated) story.

~~~
davidgerard
And this appears to be the case!

Dodgy rumour on QQ: [https://mp.weixin.qq.com/s/2YfePTC0sGsFjHvf-
HUqqA](https://mp.weixin.qq.com/s/2YfePTC0sGsFjHvf-HUqqA)

Effect on price (screenshot from Coindesk this afternoon):
[https://davidgerard.co.uk/blockchain/wp-
content/uploads/2017...](https://davidgerard.co.uk/blockchain/wp-
content/uploads/2017/09/btc-price-20170908-768x433.png)

Nothing to see here :-)

------
senatorobama
Can someone explain the true story behind Bitcoin and the price? I can't help
but shake the feeling that someone is playing an exquisitely long game.

~~~
paulmd
Money laundering and drug trade.

China has export controls to prevent USD from fleeing the country and
weakening RMB. Instead, people buy mining equipment and export their wealth as
Bitcoin.

Many of the institutions within the cryptocurrency world are also transparent
money-laundering schemes. For example Nicehash is a system that lets people
"earn money mining cryptocurrency" by "renting their hardware to bidders", but
from a high-level perspective this is essentially miners getting paid in dirty
money and giving bidders "clean" coins generated on their hardware.

The darknet drug trade needs no explanation, of course.

I tend to think the darknet trade would be sustainable on its own (at a much
lower price), but the capital flight is where most of the runup is coming
from. They're moving it to real-estate in places like BC and Australia.

~~~
TooSmugToFail
You're forgetting that all those supposedly "clean" coins need to come back
into fiat without tripping any alarms somehow, which is the central challenge
in any laundering operation.

Plus, it makes absolutely no sense that this supposed money laundering scheme
is the price driver, because if the intention is to launder money by
buying/renting CPU power, then the fiat coming in would not have any upward
pressure on the price (as it goes into hardware to mine coins) while at the
same time the coins mined in such operation would actually push the price of
BTC down.

Finally, I really can't see the connection behind Asians moving assets into
real-estate in Canada and Australia and cryptocurrencies, unless such
transaction are being paid for in crypto. I haven't heard/read of such cases.

My 2 cents: it's a classic bubble. Bunch of people made incredible nominal
returns (think 100x or 1.000x) by having bought really early, and then price
being driven up on relatively small volumes by new people increasingly piling
in. This created an impressive social proof, and the masses started to pile
in.

I'm sure we're in a bubble right now, and that it's going to burst/deflate.
The question is when, and what's going to be the trigger. Judging from the
recent events, heavy-handed regulation is a possible candidate for a trigger.
There's so much bullshit ICO's, and that may be a red rag that sets the
regulators on a crackdown.

That being said, I'm long term bullish on BTC and ETH, but there's likely
going to be a massive extinction among the altcoins during the next bear
period.

------
davidgerard
Second report:

[http://finance.caixin.com/2017-09-08/101142797.html](http://finance.caixin.com/2017-09-08/101142797.html)

No trade allowed between BTC and Yuan, as far as I can make out.

------
0x4f3759df
Apparently top tweet from ViaBTC confirms

[https://twitter.com/viabtc?lang=en](https://twitter.com/viabtc?lang=en)

~~~
davidgerard
If it does, you need to link the tweet, 'cos I see nothing there that says
that.

The Caixin report's Google translation seems to suggest it's just ICOs, though
...

~~~
0x4f3759df
[https://twitter.com/yhaiyang/status/906166588251844609](https://twitter.com/yhaiyang/status/906166588251844609)

was retweeted by ViaBTC, but then un-re-tweeted I guess

------
htfy96
Some unconfirmed sources reported that China was going to establish state-
owned blockchain exchanges in provinces.

------
epynonymous
any news about btcc.com's fate? the main exchanges in china are btcc, okcoin,
and huobi

~~~
0x4f3759df
OkCoin still operating

[https://twitter.com/cnLedger/status/906197219560136705](https://twitter.com/cnLedger/status/906197219560136705)

------
davidgerard
Can someone translate this? Google Translate gives something barely
comprehensible ...

Not seeing anything on 8btc yet ...

------
forestjc
is this website reliable?

