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I don't see how it's a "good sign for Bitcoin". Until now people thought Bitcoin is going to explode in China, but now China put some serious restrictions on it

by salient 13y ago

I don't see how it's a "good sign for Bitcoin". Until now people thought Bitcoin is going to explode in China, but now China put some serious restrictions on it. Why would that be a good sign? Also, what happens if exchanges won't be allowed to have a bank account with the banks either? That's always been one of the biggest fears regarding Bitcoin - that if the governments decided to go after Bitcoin, that may not kill Bitcoin, but it would seriously slow down its growth and liquidity if they made it illegal for exchange companies to exchange Bitcoin.

ashray 13y ago
The restrictions appear to be placed on banks and other financial institutions creating any bitcoin related instruments (ETFs, etc.) or dealing directly with bitcoin (eg. exchange RMB for BTC or the reverse). Also, it would essentially prevent a bank using it's reserve for a bitcoin investment. Exchanges can still operate as exchanges and can continue to have bank accounts as long as said banks do not deal themselves in bitcoins. Individuals and businesses are free to use bitcoin. This is actually very good news. The government was silent all this while and though they haven't said "Bitcoin is the new reserve currency", the Chinese stance is essentially the exact same stance that the US Senate took last month. I'm sure US banks also cannot deal with something that isn't a 'valid currency'. This is a much better translation of the bitcoin notice: http://www.reddit.com/r/Bitcoin/comments/1s5hzl/my_human_translation_of_the_china_regulation/ http://www.reddit.com/r/Bitcoin/comments/1s5hzl/my_human_tra...
- deleted 13y ago
  [deleted]
alphonse23 13y ago
I think it's a bad sign for the Chinese, not the bitcoin. If the central bank doesn't regulate it's trade, they're slowing down the time it takes for Chinese to trade compared to other countries. It just means only private wealthy companies can facilitate the trades -- which is dangerous in itself. By opting out of controlling bitcoin transactions, I think the Republic of China is in some ways harming its only citizens. People will trade btc whether the banks support it or not, the chinese gov can help regulate this, but if they choose not to, they're hurting their own citizens.
- rms 13y ago
  The CCP pervasively makes decisions that can harm its people. I didn't realize people were seriously considering the idea that the PRC was going to offer a national trade in bitcoin.
  - joezydeco 13y ago
    Bingo. And there's no way in hell that the CCP would let equity slip out of the country in any large amount.
    - frenchy 13y ago
      Wouldn't keeping equity in the country be in the interests of the people anyway? It's the wealthy who want to ship their wealth overseas.
girvo 13y ago
Restrictions like these were always going to happen. Whether they take them further like you've said is the big question. For now, it's going to continue to grow, short term at least.

by salient 13y ago

ashray 13y ago

The restrictions appear to be placed on banks and other financial institutions creating any bitcoin related instruments (ETFs, etc.) or dealing directly with bitcoin (eg. exchange RMB for BTC or the reverse). Also, it would essentially prevent a bank using it's reserve for a bitcoin investment. Exchanges can still operate as exchanges and can continue to have bank accounts as long as said banks do not deal themselves in bitcoins. Individuals and businesses are free to use bitcoin. This is actually very good news. The government was silent all this while and though they haven't said "Bitcoin is the new reserve currency", the Chinese stance is essentially the exact same stance that the US Senate took last month. I'm sure US banks also cannot deal with something that isn't a 'valid currency'. This is a much better translation of the bitcoin notice: http://www.reddit.com/r/Bitcoin/comments/1s5hzl/my_human_translation_of_the_china_regulation/ http://www.reddit.com/r/Bitcoin/comments/1s5hzl/my_human_tra...

deleted 13y ago
[deleted]

alphonse23 13y ago

I think it's a bad sign for the Chinese, not the bitcoin. If the central bank doesn't regulate it's trade, they're slowing down the time it takes for Chinese to trade compared to other countries. It just means only private wealthy companies can facilitate the trades -- which is dangerous in itself. By opting out of controlling bitcoin transactions, I think the Republic of China is in some ways harming its only citizens. People will trade btc whether the banks support it or not, the chinese gov can help regulate this, but if they choose not to, they're hurting their own citizens.

rms 13y ago
The CCP pervasively makes decisions that can harm its people. I didn't realize people were seriously considering the idea that the PRC was going to offer a national trade in bitcoin.
- joezydeco 13y ago
  Bingo. And there's no way in hell that the CCP would let equity slip out of the country in any large amount.
  - frenchy 13y ago
    Wouldn't keeping equity in the country be in the interests of the people anyway? It's the wealthy who want to ship their wealth overseas.

girvo 13y ago

Restrictions like these were always going to happen. Whether they take them further like you've said is the big question. For now, it's going to continue to grow, short term at least.