Chinese Bitcoin Trading Soars As Local Exchanges Deny Crackdown Reports

Tyler Durden's picture

As we noted earlier, bitcoin has been unable to meaningfully reverse the drop that followed reports that Chinese authorities were planning to shut down local digital currency exchanges as part of a crackdown on ICOs. The news, which first surfaced in China’s state-owned Caixin media network, which presumably has sources deep within the Chinese government, sending bitcoin spiraling lower as investors feared that 23% of the market’s overall trading volume might soon evaporate.

Yet, days later, the country’s largest digital-currency exchanges say they’ve heard nothing from Chinese authorities.

And in another development that will certainly have market participants scratching their heads, the daily trading volume of the Chinese bitcoin exchange market has suddenly surged to nearly double that of the US market. For the first time since November 2016, the Chinese market even briefly overtook the US in terms of market share, as cryptocurrency news points out.

However, unlike in past instances when Chinese volume overtook the US, bitcoin in China continued to trade at about a $200 discount to US-traded pairs. The premium persisted for years, until the imposition of strict regulations and policies on bitcoin trading platforms in 2016. It has since shifted to other markets, like Japan and – even more notably – South Korea.

Bitcoin Price in USD

Bitcoin Price CNY:

The spike in volume triggered a surge in price, as the Chinese market rose by more than 9% on day when bitcoin prices trading in the US, Japan and SK were largely flat.

And perhaps because the initial reports stipulated that peer-to-peer bitcoin trading wouldn’t be affected by the crackdown, the Chinese over-the-counter and peer-to-peer bitcoin markets such as LocalBitcoins has also increased over the past two weeks, as Cryptocoins News points out.

For their part, the exchanges believe the ban will not be carried out…

“Huobi, OKCoin and BTCC, the three leading bitcoin exchanges in China, have all stated that they do not believe the ban will be approved and are not even sure if it is the actual plan of PBoC. The three companies reassured their clients that they have not received any directives from PBoC and that they are willing to comply with any requests from the Chinese government and its financial regulators.”

Hu Bing, a researcher at the Institute of Finance and Banking, a Chinese government-supported academic research organization, said recently that any ban would be temporary.

“The Chinese Academy of Social Sciences and its Institute of Finance and Banking are affiliated with the State Council of the People's Republic of China, the chief administrative authority of the People’s Republic of China. The Chinese Institute of Finance and its researchers are considered to be a government institution and government officials.


In his interview with CCTV translated by Box Mining, Bing explained that the suspension on ICOs and the government’s declaration of ICOs as an illegal fundraising method are only temporary, until local financial regulators introduce necessary regulatory frameworks and policies for both ICO investors and projects.


More importantly, Bing emphasized that the Chinese cryptocurrency community must understand that the government has not “forbidden” ICOs but instead “paused” them, demonstrating the government’s intention to resume ICOs in the near future. Bing also noted that the Chinese government and its financial regulators are currently considering the potential of allowing ICOs to raise money in a controlled environment, through a licensing program.”

Russian Finance Minister Anton Siluanov  clarified that banning digital currencies would make no sense, adding that his country’s government would develop a plan to regulate them this afternoon.

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wee-weed up's picture



Ha! Like the ChiCom gov't is going to let the exchanges know "in advance" that they are going to shut them down...

How naive can one be!

tmosley's picture

So the oldbugs go from dancing in the streets, to shitting in them.

Perhaps India really is the place they belong.

silverserfer's picture

I saw this guy with a shirt... made entirly made outy of bitcoins. cost him like $3 million. But it was dope. 

tmosley's picture

I saw a guy with a shirt made out of gold.

He got murdered.

I'm sure there was no connection.

Silvery Dan's picture

BTC is in a range...  smart money getting out, dumb money getting in.  Looks to me like we had the Bear trap in July as well as recently a Bull trap.  That and a possible EMP...  go for it, I'll keep mine in phys.

tmosley's picture

Will you eat your own dick if it makes a new high?

Shift For Brains's picture

I used to not like tmosley but I am, tonight, in this very arena, going to make a prediction: tmosley will, at some point in the not-distant future, join the Pantheon of Revered Names who people talk about as "the good old days." In his favor:

  1. To my knowledge, has NEVER used the line "Bitcoin bitchezzzzzz!"
  2. Has made (I accept his testimony) a very handsome return on his crypto investment.
  3. Often exhibits a world-weary but jocund take on commentors--see his "will you eat your own dick?" rejoinder. A fatal thrust to the tenderloin on that jibe.

Yes, tmosley will join Francis, MDB and just a handful of others. The quality goes in before the name goes on.

Please note I have no /sarc tag close.

runswithscissors's picture

tmoley is fixated on watching someone eat their own dick...its kinda pathetic.

tmosley's picture

>I don't get the joke

You surely don't.

Golden Phoenix's picture

I am a fan. Or a propellor. It's hard to tell sometimes.

silverserfer's picture

Come on, ONLY dumb money has gotten into BTC. 

tmosley's picture

Yeah, only dumb people make tons and tons of money.

Raffie's picture

Psst, wanna buy a shirt made of gold?

silverserfer's picture

oh good you got my joke. That was from the days back when you still used your brain! 

tmosley's picture

According to oldbugs, you can only be intelligent if you agree with them.

This is a tremendously stupid fucking way to think.

Putrid_Scum's picture

I told you boys to read The Reset. Many did, many didn't.

Those that did are smiling. Just finished the final war game for The Reset, you boys better know what Rothschild is thinking. I'll make it available tomorrow. (Hint: You'll need a passport.)


VD's picture

same idiots that got herded into silver at ath's stupidly sold for big losses, are now converted crypt0-muppets and will be hosed far worse w/ their "coins"....

lester1's picture

Cryptos are a fad. Kinda like 3d printing stocks back in 2014.

FreeShitter's picture

Maybe for you, but they are 100000000 times better than LODE

lester1's picture

LODE has 3.2 million oz of gold on just 10% of their explored properties in Nevada.


How much gold do YOU have on your property Barry??

FreeShitter's picture

How much has LODE gone up % wise compared to BTC? 

lester1's picture

Do a little research on bubbles my friend.

FreeShitter's picture

I have already, dont see any in the crypto space just yet. I see you didnt answer my question either. 

lester1's picture

Bitcoin chart is almost identical to 3D Systems stock back in 2014. It's going down.

gigadeath's picture

Crypto currencies are basically a daisy chain of cyphers encoding the 'deep file'. The most disgusting pornography made in the history of the world, compiled onto the net. Post pizzagate, I still cant believe how few people question the true nature of bitcoins first two transactions, two "pizzas".... 

gigadeath's picture

Might not like hearing it, but its the truth.

tmosley's picture

No, your made up ravings are not the truth.

gigadeath's picture

Without the drug war bitcoin volume would be relegated to hitmen, illegal pornography and other vile endeavours. You should know about ravings, jew hater, lets hear more about how killing all the jews in the world will solve all our problems, tmosley.

FreeShitter's picture

Ok before bitcoin we never used USD to buy or sell porn, drugs, hitmen, military invasions?

gigadeath's picture

Of course, but it all wasnt perfectly traceable the way it is today.

tmosley's picture

Hahaha, only kikes use the term "jew hater".

Now hold still while I gas you.

overbet's picture

A lot of crypto bashers on here. Hold a bit of everything. Gold, silver, BTC, ammo, alcohol, pain killers. I personally think if the shit went down alcohol, ammo and pain pills would be much more valuable and liquid than gold. What are you going to buy with an oz of gold? What if they dont want youre silver? It'll be hysterical if the shit ever hits the fan and nobody wants your gold and ask you for btc. 

spag's picture

you forgot the wheat.... my wheat is going for 1 cup per 2kg of gold when the shit goes down.

lester1's picture

And how many people in Florida DONT have access to their Bitcoin right now???


Mic drop..

CJgipper's picture

ermagawwwwwd!!!!! the EMP!!!!!!!

tmosley's picture

Far fewer than the people stuck with gold that they can't sell until the coin shops open a week or more from now.

*Mic explode*

*Walks away from explosion looking cool*

runswithscissors's picture

One gold guinea for a generator!

overbet's picture

You really beleive that we could go and stay dark? I'll take that bet and lay you odds. 

JustUsChickensHere's picture

It appears that the mobile phone network is still operating in quite a few parts of Florida.... so anyone using a Bitcoin phone wallet (or that plus a paper wallet) is ok.

Spaced Out's picture

You think the only thing people will have with them, carefully wrapped in plastic, won't be their smart phone?

aloha_snakbar's picture

The Birth of Bitcon

Two friends, Bob and Satosh are sitting around after an evening of consuming copious amounts of some especially wicked dank. Bob says to Satosh:

Hey Satosh... I have a genius idea

Yeah, what is it?

You know that app you coded...the one that churns out the useless SHA algorithms?


LOL...lets sell them as digital currencies! are fucking wasted, here, have another bong

No, seriously. We get that graphic artist you know create a slick image of a 'gold' coin, and then we can further confuse the rubes by telling them their 'coins' have to be "mined", as if they were real, physical metals!

Dude... you are insane! What kind of moron would buy something like that?

Bob: Oh... I dont know. Remember that now worthless token you paid stupid money for on WoW?

They sit there and stare at each other for a moment, and then both burst out into torrents of tear stained laughter

They are still laughing today.

The rest is history

"On a long enough timeline, the price of all cryptos drops to zero"



LOL... cryptotoken user are *exactly* like a teenage girl getting her period for the first time....

FreeShitter's picture

Here's ^^ our number one crypto retard with his copy/paste meme that he posts on every bitcoin article.

someup-somedown's picture

"On a long enough timeline, the price of all cryptos drops to zero"

Umm. It actually looks like Gold is winning that race... 

Madison's_Ghost's picture

Its just like the flat-earth, man.  There is a world wide conspiracy that everyone is in on except you and the people you know.  Its crazy!




Exponere Mendaces's picture

What a cut-and-paste faggot.

Seriously, you have nothing to add. Not even an ORIGINAL troll.

Just the same old bullshit - like the shit in your skull.

Maybe take the cocks out of your mouth and try to be less of a retard. Oh wait, I'm talking to a gold "stacker". My mistake....