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Chinese exchanges deny bypassing capital control but regulation inevitable

As per a report by Caixin, a famous economic and political media, several bitcoin exchanges denies the possibility of using bitcoin to bypass the tightening capital control in China. The report attributes the rocketing price of Bitcoin to global demand and the loss of faith to traditional currencies.

What happen around bitcoin right now looks De Javu but the situation has changed . Plenty of mainstream media coverage on the street but the bubble index developed by Jiang Zhuo’er says No.

“The Bitcoin Bubble Index is 2, way below the level back in late 2013.”

bitcoin-bubble-index

Bitcoin Bubble Index by Jiang Zhuo’er source: 8btc forum

Wu Gang, CEO of Haobtc, attributes the recent rise to the increasing global demand for bitcoin, which is driven by

OTC trade instead of the online exchange.

He also says that recently there is no increase of foreign registrants and transactions and it is impossible to use Bitcoin to exchange foreign reserve.

Bobby Lee, CEO of BTCChina, blames the fiat system:

The currency inflation and cash-ban have shaken people’s faith in fiats. It has become a trend to convert fiats into digital assets.

He also mentions the relatively stable supply of Bitcoin makes it a more stable storage of value.

Star Xu, CEO of OKCoin, warns the potential bubble and refutes the link between FX and Bitcoin.

“Bitcoin price has no connection with foreign reserve exchange, that’s for sure.”

He explains:

“If people keep on buying Bitcoin in China and dump it abroad, the price variance between Chinese and foreign Bitcoin exchange will keep on growing. However, the fact is that the price variance is quite stable.”

In accordance with regulatory requirements, the domestic Bitcoin trading platform must conduct anti-money laundering review, which also applies to all foreign bitcoin exchanges.

These exchanges are trying not to draw fire against themselves. However, the efforts may be futile as the market is heating up in China. As pointed out in a report by Shenwanhongyuan Securities on January 3rd:

“At present, the domestic Bitcoin transactions are still in a gray area, although the operation poses some difficulty and risk to general public, but theoretically it is possible to realize currency exchange bypassing the capital quota and censorship through domestic purchase and sale abroad.”

Although Bitcoin is treated as commodity in China at the moment, its features like quick transfer, large amount has dwarfed relevant regulations.

The strengthening of regulation on Bitcoin transaction is inevitable.

COMMENTS(19)

  • hl5460
    6 months ago hl5460

    As per a report by Caixin, a famous economic and political media, several bitcoin exchanges denies the possibility of using bitcoin to bypass the tightening capital control in China. The report attributes the rocketing price of Bitcoin to global demand and the loss of faith to traditional currencies.What happen around bitcoin right now looks De Javu but the situation has changed . Plenty of mainstream media coverage on the street but the bubble index developed by Jiang Zhuo’er says No.“The Bitcoin Bubble Index is 2, way below the level back in late 2013.”http://news.8btc.com/chinese-exchanges-deny-bypassing-capital-control-but-regulation-inevitable

  • gredisgold88
    6 months ago gredisgold88

    Quote from: hl5460 on January 04, 2017, 10:36:16 AM
    As per a report by Caixin, a famous economic and political media, several bitcoin exchanges denies the possibility of using bitcoin to bypass the tightening capital control in China. The report attributes the rocketing price of Bitcoin to global demand and the loss of faith to traditional currencies.What happen around bitcoin right now looks De Javu but the situation has changed . Plenty of mainstream media coverage on the street but the bubble index developed by Jiang Zhuo’er says No.“The Bitcoin Bubble Index is 2, way below the level back in late 2013.”http://news.8btc.com/chinese-exchanges-deny-bypassing-capital-control-but-regulation-inevitable
    information were very nice and helpful, but the skyrocketing price of bitcoin raises some speculation from me, within three months the price of bitcoin rose from $ 650 into $ 1,000, meaning there is now intake of fresh money from a few people or a lot of people who make the price of bitcoin increasingly uphill, but it is questionable whether bitcoin will fall like a year ago?

  • somac.
    6 months ago somac.

    In the chart, what does the orange line represent?

  • Xester
    6 months ago Xester

    Bitcoin will possibly fall possibly by next year. China has developing and planning to replace Chinese Yuan with a fiat virtual currency. It means that the country who has the largest hold of bitcoin and mining farms is going to change their business. They will move away from bitcoins and promote their own digital money, they are also calling other countries to participate in their advocacy of a cashless society.

  • panju1
    6 months ago panju1

    Why do they deny the possibility of Bitcoin being used to bypass capital controls? They would be better off stating that if Bitcoin is used to evade capital controls and other laws, there is a trail which can be used as evidence.

  • chesatochi
    6 months ago chesatochi

    Quote from: panju1 on January 04, 2017, 04:13:56 PM
    Why do they deny the possibility of Bitcoin being used to bypass capital controls? They would be better off stating that if Bitcoin is used to evade capital controls and other laws, there is a trail which can be used as evidence.

    I think some buy bitcoins to put some money away off China or evade controls of the anonymity of the currency. Why so many people rush into the currency? I believe they found a legal way to bypass the regulation, in the article they mention that those exchanges need to comply with the anti-money laundering.

  • BitcoinAllBot
    6 months ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • prelsidente
    6 months ago prelsidente

    Oh, here comes the “China bans bitcoin” posts. In this case, it’s a more mild “China regulates bitcoin” like we first had in 2013.

    Funny that we never get these from credible publications and we get it from amateur blogs.

  • hl5460
    6 months ago hl5460

    Quote from: gredisgold88 on January 04, 2017, 11:37:54 AM

    Quote from: hl5460 on January 04, 2017, 10:36:16 AM
    As per a report by Caixin, a famous economic and political media, several bitcoin exchanges denies the possibility of using bitcoin to bypass the tightening capital control in China. The report attributes the rocketing price of Bitcoin to global demand and the loss of faith to traditional currencies.What happen around bitcoin right now looks De Javu but the situation has changed . Plenty of mainstream media coverage on the street but the bubble index developed by Jiang Zhuo’er says No.“The Bitcoin Bubble Index is 2, way below the level back in late 2013.”http://news.8btc.com/chinese-exchanges-deny-bypassing-capital-control-but-regulation-inevitable
    information were very nice and helpful, but the skyrocketing price of bitcoin raises some speculation from me, within three months the price of bitcoin rose from $ 650 into $ 1,000, meaning there is now intake of fresh money from a few people or a lot of people who make the price of bitcoin increasingly uphill, but it is questionable whether bitcoin will fall like a year ago?

    I don’t see any significant increase on active accounts both on exchange like btc38 or 8btc forum.

  • hl5460
    6 months ago hl5460

    Quote from: somac. on January 04, 2017, 11:58:53 AM
    In the chart, what does the orange line represent?

    it’s the active address (in 100k)

  • hl5460
    6 months ago hl5460

    Quote from: chesatochi on January 04, 2017, 04:27:10 PM

    Quote from: panju1 on January 04, 2017, 04:13:56 PM
    Why do they deny the possibility of Bitcoin being used to bypass capital controls? They would be better off stating that if Bitcoin is used to evade capital controls and other laws, there is a trail which can be used as evidence.

    I think some buy bitcoins to put some money away off China or evade controls of the anonymity of the currency. Why so many people rush into the currency? I believe they found a legal way to bypass the regulation, in the article they mention that those exchanges need to comply with the anti-money laundering.

    Yes, verification varies with withdrawal amount or fiat-related.

  • Wind_FURY
    6 months ago Wind_FURY

    Quote from: hl5460 on January 04, 2017, 10:36:16 AM
    As per a report by Caixin, a famous economic and political media, several bitcoin exchanges denies the possibility of using bitcoin to bypass the tightening capital control in China. The report attributes the rocketing price of Bitcoin to global demand and the loss of faith to traditional currencies.
    We could all come with different opinions and “facts” on why the price of Bitcoin is rising right now. The truth is no one really knows why. Maybe it is a simple pump and dump.Quote
    What happen around bitcoin right now looks De Javu but the situation has changed . Plenty of mainstream media coverage on the street but the bubble index developed by Jiang Zhuo’er says No.
    I do not mean to be disrespectful. Who is  Jiang Zhuo’er and why should we listen to him?Quote
    “The Bitcoin Bubble Index is 2, way below the level back in late 2013.”http://news.8btc.com/chinese-exchanges-deny-bypassing-capital-control-but-regulation-inevitable

    Kindly explain to us what the Bitcoin Bubble Index is so we that we understand each other and start a good discussion.

  • hl5460
    6 months ago hl5460

    Quote from: Wind_FURY on January 05, 2017, 03:12:48 AM

    Quote from: hl5460 on January 04, 2017, 10:36:16 AM
    As per a report by Caixin, a famous economic and political media, several bitcoin exchanges denies the possibility of using bitcoin to bypass the tightening capital control in China. The report attributes the rocketing price of Bitcoin to global demand and the loss of faith to traditional currencies.
    We could all come with different opinions and “facts” on why the price of Bitcoin is rising right now. The truth is no one really knows why. Maybe it is a simple pump and dump.Quote
    What happen around bitcoin right now looks De Javu but the situation has changed . Plenty of mainstream media coverage on the street but the bubble index developed by Jiang Zhuo’er says No.
    I do not mean to be disrespectful. Who is  Jiang Zhuo’er and why should we listen to him?Quote
    “The Bitcoin Bubble Index is 2, way below the level back in late 2013.”http://news.8btc.com/chinese-exchanges-deny-bypassing-capital-control-but-regulation-inevitable

    Kindly explain to us what the Bitcoin Bubble Index is so we that we understand each other and start a good discussion.

    Here is more info about himhttp://news.8btc.com/as-a-china-mining-pool-owner-why-i-am-a-hardcore-opponent-to-segwit

  • dfox101
    6 months ago dfox101

    They obviously want to deny in order to avoid trouble with the government. But the fact is, Chinese people so hot in bitcoin because they want to bypass the regulations and want to move the money freely to abroad. This is the fact, which will certainly lead to stricter rules in China soon.

  • hl5460
    6 months ago hl5460

    Quote from: Wind_FURY on January 05, 2017, 03:12:48 AM

    Quote from: hl5460 on January 04, 2017, 10:36:16 AM
    As per a report by Caixin, a famous economic and political media, several bitcoin exchanges denies the possibility of using bitcoin to bypass the tightening capital control in China. The report attributes the rocketing price of Bitcoin to global demand and the loss of faith to traditional currencies.
    We could all come with different opinions and “facts” on why the price of Bitcoin is rising right now. The truth is no one really knows why. Maybe it is a simple pump and dump.Quote
    What happen around bitcoin right now looks De Javu but the situation has changed . Plenty of mainstream media coverage on the street but the bubble index developed by Jiang Zhuo’er says No.
    I do not mean to be disrespectful. Who is  Jiang Zhuo’er and why should we listen to him?Quote
    “The Bitcoin Bubble Index is 2, way below the level back in late 2013.”http://news.8btc.com/chinese-exchanges-deny-bypassing-capital-control-but-regulation-inevitable

    Kindly explain to us what the Bitcoin Bubble Index is so we that we understand each other and start a good discussion.

    I have forwarded the question to Jiang, hopefully he would explain the bubble index.

  • Wind_FURY
    6 months ago Wind_FURY

    Quote from: Kakmakr on January 06, 2017, 06:14:05 AM
    People will find other ways to circumvent capital controls, if the government wants to block them from using this technology. How do you stop people from buying bitcoin and transferring that bitcoin to someone else in another country? They are farting in the wind. If they regulate this properly and this is not forced to go under ground  then they will have the opportunity to profit from it. < more tax income > People will do anything to protect their wealth, even if they have to protect it from their own government.

    Not only the the Chinese government force Bitcoin to go underground, the regulations themselves tend to make the price of Bitcoin higher. Think about it, the more they regulate it, the more it will be more valuable. Bitcoin was intended to be resistant to censorship and centralized control, the price of freedom goes up as more and more laws are passed to ban or regulate it.

  • Wind_FURY
    6 months ago Wind_FURY

    Yes thank you for doing that. An explanation of how he invented the “Bubble Index” would be a welcome effort from him. It would be nice for the people with an economics or a finance background to see and scrutinize it and find out if it has some validity. We should not be ready to take what people say seriously and should save a little doubt in order to know which are based on facts and which is not.

  • The_Dark_Knight
    6 months ago The_Dark_Knight

    Quote from: Xester on January 04, 2017, 12:01:49 PM
    Bitcoin will possibly fall possibly by next year. China has developing and planning to replace Chinese Yuan with a fiat virtual currency. It means that the country who has the largest hold of bitcoin and mining farms is going to change their business. They will move away from bitcoins and promote their own digital money, they are also calling other countries to participate in their advocacy of a cashless society.
    The general public can be deceived by that move but to us it will be very obvious they are trying to capitalize on the bitcoin craze and make the citizens think they are using something like that when in fact they will be using nothing but a copy of the original with none of the advantages.

  • Kakmakr
    6 months ago Kakmakr

    People will find other ways to circumvent capital controls, if the government wants to block them from using this technology. How do you stop people from buying bitcoin and transferring that bitcoin to someone else in another country? They are farting in the wind. If they regulate this properly and this is not forced to go under ground <black markets> then they will have the opportunity to profit from it. < more tax income > People will do anything to protect their wealth, even if they have to protect it from their own government.

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