2013-12-16

PBOC Pops the Bitcoin Bubble

What China buys goes up in price. What Chinese regulators crack down on, collapses in price.

The Google translation is pretty bad on this one, but it conveys the negative news as the central bank cracks down on third party payment.

First here's English coverage of the rumored shift, based on closed door meetings between Bitcoin companies and the PBOC yesterday.

China Bans Payment Companies from Working With Bitcoin Exchanges, Sources Claim
A reputable source told CoinDesk that the People’s Bank of China (PBOC) met with most of the top third-party payment companies this morning.

The source said the meeting topic was unrelated to bitcoin, but digital currency became an important part of the discussion.

“PBOC, in no uncertain terms, directed third-party payment companies not to do business with bitcoin exchanges in China,” they explained.

.......They went on to say that if and when this happens, people will still be able to withdraw their money from Chinese exchanges, they just won’t be able to deposit new funds.

“There’s no need to panic and do a run on the bank. People will still be able to sell their bitcoins for local currency and then withdraw that currency,” they concluded.

Here's the Chinese article, Google Translated below.

央行约谈第三方支付防范比特币风险 (Central Bank interviews with third-party payment bitcoin risk)
"The central bank regulations third party payment institution shall not provide hosting bitcoin trading site for the trading business." Yesterday afternoon, the central bank called third-party payment companies meeting revealed the news.

  "First Financial Daily" reporters learned exclusively, December 5 issued "on guard against the risk of Bitcoin notice" (the "Notice") Following the central bank again yesterday, "attack", interviews with more than 10 third-party payment companies relevant person in charge, it may not be explicitly requested to Bitcoin, Wright credits (LTC) and other trading sites offer payment and settlement business.

  In less than two weeks time, the central bank even out "two trick" to prevent the risk of Bitcoin, and convey the spirit of the meeting is to be interpreted as "drastic" Many Bitcoin insiders.

  Third-party payment "three line"

  A large third-party payment company, told reporters that the participants who, yesterday morning, more than 10 third-party payment companies convened by the central bank, in Beijing held a closed-door meeting. Such persons in an interview with this reporter revealed that the meeting, Deputy Director of the settlement payment was chaired by the Secretary golden week the central bank, every company has sent 1 to 2 participants stakeholders.

  "Justice Week at the beginning of the meeting made it clear that the meeting was not convened to discuss whether the companies about Bitcoin-related businesses can conduct, but to convey the attitude of senior central bank, which may not be the first third-party payment companies to bitcoin, Wright currency and other trading sites provide payment and settlement services; Secondly, for payment institutions business cooperation has occurred should be lifted, the stock of money at the latest to complete the withdrawal before the Spring Festival, the new payment services may not occur; Third, strict implementation of the December 5 the central bank issued a "notice". "these third-party payment companies told this reporter.

  According to newspaper reporter to get a third-party payment companies participants recorded meeting minutes, the meeting, in addition to domestic regulations do not allow third-party payment agencies engaged in related businesses bitcoins, the central bank will also be After studying the relevant requirements for access in the territory of Bitcoin-related businesses overseas payment mechanism.

  After Golden Week convey relevant spiritual, individual companies have made the payment that he will strictly enforce the above three requirements. But it is worth noting that one of the world's most active trading site BTCC (bitcoin China) as well as Bitcoin, Wright currency trading site OKCOIN have third-party payment agencies from the original co-pay through fiscal replaced by another third-party payment Companies, meanwhile, have users complained that two sites are currently only using money paid through withdrawals, but not through its recharge.

  "Alipay has not any bitcoin trading site had business cooperation," Alipay stakeholders in an interview with this reporter, said, "If investors find recharge channels Alipay, you need to be alert to whether the other individual accounts, if really is a personal account, the investor must be aware of the risks. "

  There Bitcoin Insiders believe that the contents of the central bank from yesterday's meeting, the central bank for risk prevention efforts may result in a larger bitcoin, but he also expressed puzzled, because this might make the original line open and transparent Bitcoin trading platform is transferred to the ground, the difficulty of monitoring will also rise.

  Bitcoin bleak future in China?


  "Come after" notice "is issued, we are in this thing to worry about third-party payment will not do it, did not think of a prophecy." Bitcoin transaction, a person in charge after hearing the news of the newspaper Reporter said.

  After the "notice" issued by the vast majority of people in the industry believe that the "caliber looser" or even "a regulatory innovation" is different, the spirit of the meeting of the central bank to bitcoin industry obviously caused some blow. Many industry insiders have said that bitcoin future development of the situation in China worrying, will choose different levels of "escape", or transferred to offshore trading platform Bitcoin transactions.

  Earlier, the central bank's "notice" had explicitly requested at this stage of financial institutions and payment institutions shall not conduct business associated with bitcoins are not allowed to bitcoin for a product or service pricing, may not be sold or traded as a central counterparty bitcoin not covered with Bitcoin-related insurance business or insurance bitcoins into range. After the "notice" is issued, although Bitcoin market has movement fell short, but soon that recover "lost."

  Yesterday's meeting will have much impact on prices bitcoins is still unknown, but as of press time newspaper reporter, BTCC Bitcoin price has fallen from yesterday's highest 5335 yuan to 4600 yuan, a decrease of 15%.


H/T: ZeroHedge

No comments:

Post a Comment