China's New Rules: What Do They Mean for Bitcoin?
A joint statement from China's authorities had an interesting impact on bitcoin's value last week. The statement served as a 'notice' highlighting that "bitcoin is not issued by the monetary authorities", and that it's "not the true meaning of money". The release also states that bitcoin "cannot and should not be used as currency in circulation in the market". Let's examine. China's growing presence in bitcoin. China has been a booming market for bitcoin. Since early November, the world's leading bitcoin exchange has been BTC China. BTC China has just received $5m in venture capital....
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These new regulations will also have an impact on Bitcoin in China. Since cryptocurrency does not fall under these regulations, it may become the new peer-to-peer lending option. Peer-to-peer lending has always been a very popular trend in China. That is not entirely surprising, as the country is keen on innovation and embracing new trends. But there have been a fair amount of problems with P2P lending in China over the past few months. New rules have been announced, which will put a vice grip on this innovative business model. At its core, any peer-to-peer service should not shut down....
Bitcoin started dropping in price once again Wednesday after Chinese authorities stated exchanges “were violating rules.” PBoC: Rules ‘Violated’, AML Measures ‘Not Sound’. Inspections conducted on Huobi and Okcoin by a joint group of overseers including the People’s Bank of China (PBoC) revealed what a statement calls “margin trading which violated rules, resulting in abnormal price fluctuations on the market.” “During the inspection, it has also been discovered that these platforms had not established [a] sound [anti-money laundering] system according to regulations,” the statement,....
The People’s Bank of China (PBOC) renewed its efforts to regulate bitcoin exchanges this week. Zhou Xuedong, Director of the Bank’s Department of Business Management, which carried out inspections of bitcoin exchanges, outlined some new rules which exchanges must follow. PBOC Adopting a ‘Forgiving Attitude’. Zhou, who is also a deputy to the NPC....
The use of Bitcoin as a capital funneling method for Chinese investors is hitting the mainstream news, however, there is already talk of authorities clamping down on it - again. As China’s yuan continues its multi-year low against the dollar, authorities have acted to stem the outflow of value. Investors are finding ever more ingenious ways of getting their capital out of the country - and Bitcoin is becoming the method of choice. Now, even regional news outlets are quoting sources actively using Bitcoin where other methods are no longer available. Investor: China’s Market Rules ‘Not....
Daniel Jennings, a contributor to Seeking Alpha, claims that rigid currency rules in some countries, such as China, Egypt and Zimbabwe, are pushing demand for bitcoin, boosting its price. He says national currencies may no longer be viable in some countries. Many financial observers (Jennings cited Zero Hedge’s Tyler Durden, a financial blogger) have attributed bitcoin’s recent price rise to actions in China, where the government limits the amount of money people can transfer out of the country. China: The ‘Tip Of The Iceberg’. China, however, may only be the “tip of the iceberg,”....