Rumors that China prohibits Bitcoin again, cryptoma markets in mild panic

Rumors that China prohibits Bitcoin again, cryptoma markets in mild panic
Police officer in Shanghai. Image by Konrad Lembcke via Flickr.com. License: Creative Commons

China supposedly banned Bitcoin at the weekend. The courses from Bitcoin and all cryptocurrencies are then rushed down a little. Unlike the other banned rumors, the reactions of stock exchanges suggest that this time China means a little more serious than usual. But it could also be that it is only a result of the ICO ban.

Since the end of 2013, China has been coming from time to time that Bitcoin is banned. In the Bitcoin scene there are two typical reactions to this message: either take them fully and sell them full of panic-or they as a fud (Fear, uncertainty, doubt). It could be that this time neither one nor the other reaction is appropriate.

It all started with a report by the Chinese business magazine Caixin on Friday, according to which the Chinese government would like to close Bitcoin exchanges. Caixin refers to sources from the central bank. The boss of Viabtc-a mining pool and a stock exchange-Haipo Yang, confirmed this via Twitter.

China wants to Shutdown All Exchanges. pic.twitter.com/lmeif0s5eo

– Haipo Yang (@yhaiyang) September 8, 2017

Similar reports on Bloomberg and Wall Street Journal were then published today. According to these reports, the trading of cryptocurrencies on stock exchanges is prohibited, while the outsiders are still legal (over the Counter, OTC). The economic magazines have not received an official comment from the central bank. Their sources say that the reason for the ban is the disorder that the Bitcoin stock exchange trading brought to the financial markets.

However, after Cnledger asked the big stock exchanges OKCOIN and HUOBI, they replied that they have not yet received a message from a ban and continue to operate normally. However, the stock exchanges also mentioned that in the event of the case they will of course follow regulation and set the stock market trade with Bitcoin. There was an identical statement from the third large stock exchange in China, BTCC.

Regarding Tonight’s Rumours, We Asked Representative from Okc & Huobi, they have not receiven any notice and they’re operating Normally

– Cnledger (@cnledger) September 8, 2017

All of this sounds after the trophy repetition of the usual “China forbid Bitcoin” drama: there is a rumor that tumbles the price, it was a duck, the price is recovering again, a few people are richer, a few people are poorer, and otherwise everything is fine.

The Chinese website 8BTC also writes in its English -language news that this is exactly the case. Since the server from 8BTC.com are currently overloaded, you have to read the article in Google’s cache. He recalls that Chinese magazines fake news have previously scattered from the arrest of the administrator of the Altcoin exchange Bter. The report names no other sources than the Chinese stock exchanges cited by @cnledger and thus concludes that the media jump on the ICOS prohibition actually made to manipulate the markets.

Another article from 8BTC is somewhat more informative.com (also only called up in Google cache), which rather confirms the ban. According to him, in addition to Caixing, the reputable Chinese Securities Journal also reported the ban on trade. The source of the message is a mysterious man who visited a panel of a regulatory group. In this, a special group that was founded last year to control financial risks through the Internet has brought a ban on Bitcoin’s stock exchange trading. This group was probably launched in connection with the visits of the Central Bank PBOC at the Chinese stock exchanges, in which strict regulation measures were imposed at the beginning of this year.

According to the article, the group believes that the Bitcoin market is the root of the hype for cryptocurrencies and ICOs. Before you regulate the ICO market-or prohibits-the Bitcoin market must be regulated-or prohibited-. Since Bitcoin are similar to stocks, they, according to their nature, are illegal securities. The group also explained that neither Bitcoin nor the Bitcoin stock exchanges could be equated with blockchain technology. For these reasons, it is necessary to ban the stock exchanges.

However, this is probably only a view of a regulatory group, and not yet a decision of the central bank. Therefore, this should not yet be equated with an actual ban. At the same time, however, there is still a report from 8BTC that the Yunbi altcoin exchange will close in three months. “The Stocks from Shenzhen exposed the trade of BTC and ETH against CNY.“According to reports, Yunbi will be completely closed in three months.

The Börsen Zhgtrade and Guojiaowang had already set the trade with Bitcoin and Ether against Chinese Yuan. The stock exchanges have also announced that it also stops trading with most other currency pairs. They ask their customers to withdraw yuan and digital assets. Unlike the big stock exchanges Huobi, BTCC and OKCOIN, the three stock exchanges mentioned were very strongly involved in the ICO Hype.

It would therefore be possible that the closure of these stock exchanges has nothing to do with the new news, but rather represents an aftermath of the recently complete ICO ban by the Chinese central bank. However, like most of what we know about China’s Bitcoin landscape, speculation is.