
China is considering shutting down local cryptocurrency exchanges - stoev
https://techcrunch.com/2017/09/08/bitcoin-price-drops-following-report-that-china-is-going-to-shut-down-local-exchanges/?utm_source=tcfbpage&sr_share=facebook
======
ploxiln
Relevant meme from over three years ago:
[https://www.reddit.com/r/Bitcoin/comments/23yy37/how_china_s...](https://www.reddit.com/r/Bitcoin/comments/23yy37/how_china_sinks_bitcoin_south_park_style_inspired/)

(This is not the first time, nor the second time, nor the third time, that
we've seen the news "china bans bitcoin" or "china cracks down on bitcoin".)

~~~
ajross
Could be the nineteenth time. This is the logic that BASE jumpers use: I
haven't died _yet_ , ergo it's safe.

It only needs to crash once.

And as basically everyone knows but refuses to acknowledge, the liquidity
limitations of all this speculation (i.e. there's nowhere near enough demand
to buy up a dropping currency) mean that it'll crash all the way to zero when
it does.

~~~
ploxiln
I'd rephrase the metaphor - someone is saying, "I saw him hit the cliff, he's
done for!", and then it turns out he didn't hit the cliff. After a couple
times you stop paying attention to this message, it's too unreliable.

I'll grant you bitcoin is volatile and "dangerous". That's true _before_ China
"bans" bitcoin. But the question is "did China just ban bitcoin" and the
answer is "most probably not".

~~~
ajross
OK, sure. That part I agree with. I thought you were making the case that
because people have been predicting a bitcoin crash for years (they have) and
been wrong (they have), that such a crash won't happen ( _it will_ ).

Speculative investments have boom/bust cycles, they always will. Arguing that
bitcoin is somehow immune is silly.

And, specific to bitcoin, when that crash happens it's going to be
catastrophic. Daily-trade-to-capitalization ratio for bitcoin is literally 10x
lower than it is for any other volatile security. When the owners start
fleeing there will be no one to buy.

------
brndnmtthws
This seems like fake news. Maybe created in an attempt to manipulate markets?
There's a lot at stake.

More details can be found here:

[https://twitter.com/YourBTCC/status/906181802548539393](https://twitter.com/YourBTCC/status/906181802548539393)

[http://www.allcryptocurrencies.news/bitcoin/bitcoin-crash-
of...](http://www.allcryptocurrencies.news/bitcoin/bitcoin-crash-
of-8-september-due-to-fake-chinese-news/)

[https://www.reddit.com/r/Bitcoin/comments/6yurbk/what_is_up_...](https://www.reddit.com/r/Bitcoin/comments/6yurbk/what_is_up_mister_btc/)

[https://www.reddit.com/r/CryptoCurrency/comments/6yutr2/am_i...](https://www.reddit.com/r/CryptoCurrency/comments/6yutr2/am_i_missing_something_markets_tanked_1015_in_a/)

EDIT: Thanks for the downvotes! :)

~~~
fspeech
This is based on a Caixin report, which is a reputable source. Do you have any
reputable source to refute it?

~~~
fspeech
Caixin report in Chinese:
[http://m.finance.caixin.com/m/2017-09-08/101142797.html](http://m.finance.caixin.com/m/2017-09-08/101142797.html)
Gist: exchanges are banned, off-exchange one-to-one trades okay.

------
madamelic
Yeah, because this totally doesn't go against everything cryptocurrencies are
(supposed to be) for. If anything, this is a long-term positive sign, I think.

I predict this won't work.

~~~
tryingagainbro
Depends how badly China wants this stopped. I have a feeling that China is
quite a few times worse than IRS--when they want to. Never underestimate what
they can do, when they want to.

------
bhaak
This is really odd. Remember that Chinese exchange _are_ regulated now, after
the Chinese government crushed down on them not so long ago.

FWIW, BTCChina "has not received any new directives from Chinese regulators"
[https://twitter.com/YourBTCC/status/906181802548539393](https://twitter.com/YourBTCC/status/906181802548539393)
OKCoin and Huobi also haven't got anything
[https://twitter.com/cnLedger/status/906195967908601856](https://twitter.com/cnLedger/status/906195967908601856)

------
AndrewKemendo
_Maybe the Chinese government wants even more control and is going to create a
centralized exchange and regulate those markets as much as possible._

As I stated in a thread last week[1], this seems to be the most plausible move
for them.

[1]
[https://news.ycombinator.com/item?id=15176446](https://news.ycombinator.com/item?id=15176446)

Don't think for a minute this is China trying to keep investors away from
frauds/scams, it's about them making sure they can control capital flows.

------
rkagerer
My gut feeling is there's some truth to the rumour. Related resources:

• Original Caixin Report that sparked all this:
[http://finance.caixin.com/2017-09-08/101142797.html](http://finance.caixin.com/2017-09-08/101142797.html)

• RECOMMENDED - Good English translation / interpretation of above article:
[https://docs.google.com/document/d/1sNYGpwj3EKkRhlejoycytZLq...](https://docs.google.com/document/d/1sNYGpwj3EKkRhlejoycytZLq1OpFpl0bqOtCev0HexY/edit)

• Shorter English announcement from Caixin:
[http://www.caixinglobal.com/2017-09-09/101142821.html](http://www.caixinglobal.com/2017-09-09/101142821.html)

• Coindesk article pointing out Caixin has been spot-on in the past (re their
Sep 2 leak regarding ICO fundraising): [https://www.coindesk.com/report-casts-
doubt-future-chinas-bi...](https://www.coindesk.com/report-casts-doubt-future-
chinas-bitcoin-exchanges/)

• Related official news out of China regarding ICO ban:
[https://www.reddit.com/r/ethtrader/comments/6ywtkt/the_actua...](https://www.reddit.com/r/ethtrader/comments/6ywtkt/the_actual_pboc_news_released_today_pertains_to/)

• Tweet from CEO of ViaBTC saying "China will shut down all exchanges":
[https://www.cryptocoinsnews.com/viabtc-ceo-china-will-ban-
bi...](https://www.cryptocoinsnews.com/viabtc-ceo-china-will-ban-bitcoin-
exchanges/)

I agree it's not the first time China's cracked down on virtual currency <\-->
fiat trading, but if true this could be more intense than their prior efforts.

------
arisAlexis
That's not yet clear not true. Its speculatoon based on other articles that
got viral

------
blusterXY
"China is considering losing all control over domestic cryptocurrency
activity"

~~~
yorwba
How does allowing exchanges to operate give them control over domestic
cryptocurrency activity?

Chinese capital controls are focused on people trying to move their money
overseas. If they can't control a certain pathway, they'll rather shut it down
completely.

~~~
lostmsu
They can physically seize company's assets, and block bank accounts.

~~~
tryingagainbro
...and jail the execs for 20 years in 15 minute trials--including appeals.
It's China.

~~~
jcmoscon
It's communism

~~~
polotics
The powerful corporation that calls itself the "Chinese Communist Party" for
old times' sake.

