Confusion Grows Over China "Bitcoin Exchange Ban": 3 Largest Exchanges Have Not Received Any Official Notice

Tyler Durden's picture

Bitcoin continues to hover near last week's post-ICO-ban lows having given up the rebound gains on headlines proclaiming China plans to shut local Bitcoin exchanges - a problem since the country accounts for 23% of global trading. However, the China's 3 biggest exchanges have still not received anything official with regard the ban and Russia's finance minister has outspokenly proclaimed "there's not point in banning" crptocurrencies.

Confusion remains the biggest factor weighing on cryptocurrencies for now...

As we detailed previously, China reportedly plans to ban trading of bitcoin and other virtual currencies on domestic exchanges, dealing another blow to the $150 billion cryptocurrency market after the country outlawed initial coin offerings last week.

Bloomberg reports the ban will only apply to trading of cryptocurrencies on exchanges, according to people familiar with the matter, who asked not to be named because the information is private. Authorities don’t have plans to stop over-the-counter transactions, the people said. China’s central bank said it couldn’t immediately comment.

While Beijing’s motivation for the exchange ban is unclear, it comes amid a broad clampdown on financial risk in the run-up to a key Communist Party leadership reshuffle next month.

“There has been a general tightening of the screw on regulating financial and monetary conditions,” said Mark McFarland, chief economist at Union Bancaire Privee SA HK in Hong Kong. “All of these things suggest a longer term process of tightening scrutiny of activities that aren’t in the normal sort of monetary realm.”

However, as Bloomberg reports, OKCoin, BTC China and Huobi, the country’s three biggest bitcoin exchanges, said on Monday that they hadn’t received any regulatory notices concerning bans on cryptocurrency trading.

All three venues reported transactions on Monday, with bitcoin rising 7.6 percent on OKCoin as of 5:09 p.m. local time.

The exchange ban is unlikely to have a major impact on the prices of cryptocurrencies globally because venues outside China will continue trading, according to FBG Capital’s Zhou. The country’s role in the bitcoin market had already started shrinking in recent months as authorities tightened regulation. At one point, exchanges in China accounted for more than 90 percent of the world’s bitcoin transactions.

“Whenever you start to hear about Hong Kong taxi drivers becoming millionaires from buying bitcoin, you start to think this is not necessarily driven by fundamentals,” he said.

 

“So you will get quite substantial pullbacks at some point.”

Furthermore, Chinese officials are even talking back the ICO ban as "temporary." As CoinTelegraph reports, during an interview with state-owned national television network CCTV-13, Hu Bing, a researcher at the Institute of Finance and Banking, a Chinese government-supported academic research organization, claimed that the government’s ban on initial coin offerings (ICOs) is only 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 ICOsand 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.

 

Essentially, if the government decides to legalize and regulate the ICO market, its licensing program would structure similarly to the BitLicense program of New York State Department of Financial Services (NYSDF), which requires companies to obtain a license from the state in order to operate and serve people of New York.

Additionally, CoinDesk reports that Russian Finance Minister Anton Siluanov said his department will regulate the use of cryptocurrencies in the country by the end of 2017.

Siluanov offered insight into the government's plans to oversee Russia's domestic cryptocurrency market during an appearance at the Moscow Financial Forum last Friday. Echoing previous statements by members of the Russian government, Siluanov said banning cryptocurrencies does not make sense and that the ministry will likely treat digital monies similarly to securities, Reuters reports.

According to Wordnews, Siluanov said:

"The state certainly understands that cryptocurrencies are a reality, there is no point in prohibiting them. It is possible to regulate them, so the Finance Ministry will draw up a bill by the end of the year."

His comments add to those coming from other quarters of the Russian government, offering yet another window into what could be a completed policy move by the end of the year.

Finally, as institutional investors pile into the cryptocurrency space, CoinDesk reports that they may be altering the underlying dynamics of the market itself.

By virtue of buying in, institutional investors are pushing prices up, and that's likely to continue as these investors place bets in a way that furthers an already bullish cycle many have labeled a bubble. Bearing mountains of cash and a mindset unlike retail investors, crypto hedge funds are being directed to invest all (or most) of their cash. And without sophisticated mechanisms for shorting cryptocurrencies, retail investors have limited options and excessive risk in betting on price decreases. Matthew Goetz, co-founder of new cryptocurrency fund BlockTower Capital, affirmed the impact of this buying pressure is likely to continue to mean the cryptocurrency market doesn't behave like those of more mature assets. Goetz told CoinDesk:

"As more capital comes in the space, from a market structure standpoint, whether it's funds or some other structure, that will likely be a bullish catalyst for prices."

And Goetz, who worked for more than a decade at Goldman Sachs, has no doubt the more capital will come.

"I think the space is going to continue to get more competitive, because people are seeing the opportunity set," he said.

The bullish comments were echoed by Thomas Kineshanko, co-founder of Protos Cryptocurrency Asset Management, who believes the mechanisms at play are working to push cryptocurrency prices skyward even more.

"Given the total market cap of cryptocurrency of say $150 billion on any given day, and then you add say a billion dollars, prices are going to rise.  So yes, the money coming in to the market is going to raise prices – as long as there's not any major sell-off," Kineshanko told CoinDesk.

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RedDwarf's picture

They tried that with the silk road take down.  I remember the news stories.  I guess you don't.  That narrative has already been tried and has already failed.

ET's picture

Caveat emptor.

The crypto scam. They will take your money but lock you out of your account when you want to sell.

Never count your chickens before they are hatched.

Flight to Physical Gold and Silver is the crypto Endgame.

https://www.complaintsboard.com/coinbase-b125588

Coinbase
Coinbase Contacts & Information
Posted: Sep 3, 2017 by sounderglint III
cant withdraw my money
Complaint Rating: 0 % with 0 votes
Contact information:
Grand Rapids, Michigan
United States

All the money I've made mining bitcoin I cant withdraw. Coinbase has a paypal account setup! BUT you can never get it verified. There doing this becases they don't want to send us our MONEY! COINBASE is a SCAMMMMM. Going to let the SEC and other govt agency that could crack down on these FOOLS. Investor BEWARE! Stay away from these game playing maroons.

Coinbase
Coinbase Contacts & Information
Posted: Sep 1, 2017 by Bugicz
money withdrawal
Complaint Rating: 0 % with 0 votes
Contact information:
United Kingdom
coinbase.com

sooo, after few months of making money on ETH and BTC later on, i decided to withdraw everything, since it was the masterplan from the beginning to help me fund my holiday. then i realised my uk bank account hasnt still been verified, although the first deposit came from there via SEPA transfer. I contacted the customer support with the request of verifying my account, but even after two weeks and three emails i still havent got any answer. My holidays are coming and money are still stucked at Coinbase wallet. few days ago i even deposited another 2 eur just to confirm my bank account again. Coinbase confirmed the payment via SEPA, yet my bank account is still not verified.
very very unprofessional behaviour, be careful about them. i should have known from the beginning when i wanted to buy ETH for 90 quid/1 ETH but Coinbase was postponing my purchase for few days until the price rose up to 160 quid/1 ETH.

bunch of bloody scammers.

Pavel

Coinbase
Coinbase Contacts & Information
Posted: Aug 8, 2017 by Matterhorn
coinbase have stolen thousands of euros from me.
Complaint Rating: 100 % with 1 votes

This company cannot be trusted. We placed a trace on funds of 4460.92 euros, showing the funds were received by you on 3rd aug. Here we are on the 8th and still no funds on my account, no response or reply. I hope you have enjoyed using my money because I have not. You have cost me both money, time and trust. And your arrogance with your non-existent customer service. Non existent customer service when you have 7.4m customers is a disgrace. No replies to urgent emails for weeks. Just your utter rubbish computer generated robot text that is pointless. I'm absolutely furious and have been conned. I want my money back n o w!!! Etoro were having personal conversations on email queries within an hour of me contacting them. Do you even have staff??? People need to know this I think, don't you.

Golden Phoenix's picture

An exchange is not required to acquire or transact in bitcoin.

Try taking a large sum out of your bank account. You'll find you need to apply for permission and an explanation they deem satisfactory. And that's how it's supposed to work. 

Placerville's picture

If you haven't got something new to add (to every BTC thread), STFU. 

 

You missed it and you're bitter. It shows.

CJgipper's picture

China creating a dip to buy.

Placerville's picture

They want to accumulate as much BTC as they can before the Splitcoin (Bitcoin Gold) fork on 10/01/17.

Obvious. Free Crypto dividend

Seasmoke's picture

I just do not see the person on the street handing over $4300 dead presidents for some ones and zeros on their iPhone. Yes. I did hand over $3000 when it was at $600 but even that was a strange feeling at the time.

tmosley's picture

How will you feel when you hand over a wheelbarrow full of them for a small basket of groceries?

tmosley's picture

HAHAHAHAHA! Peanutz love and trust FIAT!

CJgipper's picture

Did you know that your digital dollars aren't even actually in that digital account you supposedly have?  It's an IOU

order66's picture

No point unless of course you're trying to prevent hundreds of billions in capital flight through crypto exchanges.

aloha_snakbar's picture

In the fullness of time history will show that cryptos were as useful/relevant as blankets with sleeves...

FreeShitter's picture

salty tears from the haters are delicious.

Raffie's picture

You'd think haters have somewhere else to be stupid.

FreeShitter's picture

Bitcoin articles attract them like flies on shit.

Mustafa Kemal's picture

"salty tears from the haters are delicious."

Even without the tears, their hate is a reminder of the huge upside potential. So, it is music to my ears. Eventually tmo will learn to love their hate.

 When alohasnackbar finally breaks down to buy .1 BTC, itll cost him a bundle.

If it all goes to zero, I will have lost a little.

ZorroHedge's picture

I actually understand where his comments come from. He missed the boat and it is always better to repeat that crypto has no intrinsic value and will eventually drop to zero than to admit to yourself that you are an idiot that is completely clueless when it comes to investing.

FreeShitter's picture

He's an emotional little turd that has an emotional attachment to pm's most likely and missed out big time. 

ZorroHedge's picture

The funny thing is that owning Bitcoin and PM is not mutually exclusive. It is perfectly possible to own both. But these idiots keep stacking PM during a downtrend and ignore the insane gains of crypto. I wonder how dumb one has to be to make such decisions.

FreeShitter's picture

I have been saying that for along time, pm's and crypto are NOT in competiton with eachother, correct! However you have low IQ morons all the time on here thinking that they are..

tion's picture

We have been in upside down world for too long, and this is a paradigm shift that older generations cannot understand so easily. I have older neighbors that don't even know how/feel comfortable to order things online. With crypto there is a high level of discomfort that must be overcome and also a reluctant acceptance that must be made that upside down world may continue forever, it's not a matter of IQ. I also don't want to accept but have to look out for the fam. You grumpy geezers are strangely kind of like fam and so I crypto love-troll you because I want you to be prosperous and never hungry and diversified appropriately for all eventualities. I will keep fighting to rightside up things but it's difficult.

ZorroHedge's picture

It is time to come with a cure for Alzheimer.

Mustafa Kemal's picture

"I have been saying that for along time, pm's and crypto are NOT in competiton with eachother"

Its the classic false dichotomy.

Your either for us or against us. No, actually, I love my country AND I dont want to invade Iraq.

ZorroHedge's picture

Is that fish in your avatar a pic of yourself ? Because your remark sounds like you have fish IQ.

tmosley's picture

IQ has nothing to do with it. It is a matter of self-control. You have to recognize your own bias and discard it. Do an agonizing reappraisal of the entire situation. The vast majority are compeltely unable to do that, and thus will hold to zero. But since PMs famously never go to zero, their holders are even more doomed than other emotionally attached investors. At least they can be freed via a wipe out. PM holders will instead just watch their investments continue to lose not just to cryptos, but to fucking fiat and its inflation, continueing to "back up the truck" until they are finally subjected to a forced liquidation or they die in poverty.

Bay of Pigs's picture

Lots of people here own both.

Not sure why you guys blast PM's all day long though.

tmosley's picture

Because PM owners blast us. They, and you, started it.

If you don't like cryptos, stop clicking on crypto articles.

Bay of Pigs's picture

No. You regularly put words in my mouth trying to justify your anti PM tirades.

Congrats to all the BTC owners. I've said it numerous times here. Even told Fonestar to sell some and head to a tropical beach and enjoy himself. You should too mosley. You are wound way too tight.

tmosley's picture

Think back a few months to when you first popped out of the woodwork to attack me.

IE recall that you started this little feud by attacking me. So I attacked you right back. And you continue to troll crypto article comment sections while constantly complaining about pro-crypto "trolls" in those same articles!

Then you accuse ME of hypocrisy!

All I can do is laugh at you. So stupid. So poverty stricken. Karma in action.

Mustafa Kemal's picture

I miss fonestar. I fear that he has no use for us anymore now that he is fabulously wealthy. Even so, I bet he still lives in his moms basement. He probably just bought her a mansion and a 1960 caddilac

King of Ruperts Land's picture

I saw a fonestar comment the other day.

King of Ruperts Land's picture

No lie, but I see I am mistaken as fonestar was last seen in 2014. Wonder what I saw? A similar name? or am I ZHing in my dreams?

The comment was nothing to do with bitcoin. I just noted the username because people have referenced it in the threads.

Raffie's picture

I get tired of the PM being man handled. Right now -$11.70 an going. 

Like today, they are heading back down to the $1250 range.

 

tmosley's picture

He has grouped you together with those who have, much like those on the left have somehow conflated libertarians with fucking self-admitted nazis as "alt right". It excuses their behavior of attacking EVERYONE who DARES to be bullish crypto, no matter how respectful.

Golden Phoenix's picture

I like both but my preference is free stuff. I used to get free pms with a metal detector but don't have the backbone for it anymore. Turns out computers can dig us up free cryptos while we take a nap. Ah...much better. Zzzz...

Raffie's picture

The Litecoin boat is getting ready to pull away. The price is down, but for a limited time.

Once the cryptos take off there will be mass people who will be butt hurt for sure. 

King of Ruperts Land's picture

Snackbar didn't miss the boat. He is terrified of boats. He cannot understand how they float as there is no intrinsic buoyancy just empty space inside. He thinks they will all sink. Its just a matter of time. He is afraid the boat will turn to tulips in the middle of the sea. Boats are a Ponzi scheme being handed off to new passengers just before they sink. Its just a matter of time and everyone drowns.

King of Ruperts Land's picture

Slagging cryptos is not your long suit.

Greenspazm's picture

Folks, let me know when there is a cryptocurrency thread without tmosely's excrement appearing after every other comment.

tmosley's picture

Nobody cares about you or what you think.

Bay of Pigs's picture

I think he's pretty accurate.

You talk about people here being "emotionally attached" to PM's yet you are the most hysterical little bitch I've ever seen on ZH when it comes to crypto currencies.

tmosley's picture

Nope, I just give ten times what I get. You think it is hysteria because your bias blinds you to reality.

0valueleft's picture

I'm curious as hell to see what Overstock.com's taxes looks like. How does it work if their wholesalers only except cash, but they retail it for BTC. I guess they have to claim only the fiat value of the BTC at the time of sale. Sounds like an accounting nightmare. What am missing? Is this easier than I imagine it somehow?

tmosley's picture

They take cash AND BTC. They hold a certain amount of the latter (up to 75% last I heard). No taxes on holding bitcoin. They will have to pay capital gains tax when they subject it to a taxable event, like exchanging for fiat, or another crypto, or buying goods or services with it.

Also, it is easy enough to to the accounting with the right software.