\[news\] Chinese recognise Bitcoin
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I’m glad (maybe the wrong word) of the hours I keep for times like this (its 5:15 am in New York). What will be even better is seeing the legacy media response to BTC’s price drop - $300 in the past hour. I’m not particularly worried, and I’m sure most here aren’t either, but the implications for the Chinese consumer should definitely be kept in mind.
Anybody in China want to weigh in?
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In China,Bitcoin price is 937$ now. We’ll have it cleared up soon.
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Very interesting lizhi… can you post the source of the article?
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I thought it was just the central bank that declared it could not be traded by banks, I don’t think citizens are being stopped from using it. Perhaps a US diplomat put pressure on someone to make a statement because they saw a risk with money laundering. I think this news is being misrepresented at the moment.
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[quote name=“sas” post=“40047” timestamp=“1386245984”]
Very interesting lizhi… can you post the source of the article?
[/quote]It comes from Chinese state television
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This news may be bad for the longterm growth of coins, but who knows - Is it really any different than me walking into HSBC and expecting them to handle transactions in Euros? It actually surprises me that China hasn’t gone a step further to ban its citizens and businesses from using it all together, which seems like the type of move a tightly controlled government would make.
Either way, this is probably [b]very good[/b] news for most short term speculators.
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Chinese government to allow Chinese citizens to participate. However, official institutions, banks, securities companies, insurance companies, fund companies do not participate.Banking services are not provided.
We play us, they play their :P ;)
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hello ,
there was also a warning from the French Central Bank
please find the link under[url=http://www.banque-france.fr/fileadmin/user_upload/banque_de_france/publications/Focus-10-stabilite-financiere.pdf]http://www.banque-france.fr/fileadmin/user_upload/banque_de_france/publications/Focus-10-stabilite-financiere.pdf[/url]
and related article in French …
[url=http://bourse.lefigaro.fr/devises-matieres-premieres/actu-conseils/les-mises-en-garde-des-banques-centrales-freinent-l-envolee-du-bitcoin-666535]http://bourse.lefigaro.fr/devises-matieres-premieres/actu-conseils/les-mises-en-garde-des-banques-centrales-freinent-l-envolee-du-bitcoin-666535[/url]
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Another words, we keep our banking system, you do whatever you want with Bitcoin.
(=There is no way how we can regulate it)Good news, very good news.
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Looks like the Chinese Bitcoin news hasn’t affected the market much. Gox back at 1090 right now.
Quite interesting.
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[quote name=“mnstrcck” post=“40195” timestamp=“1386269307”]
Looks like the Chinese Bitcoin news hasn’t affected the market much. Gox back at 1090 right now.Quite interesting.
[/quote]We have seen this pattern of rapid recovery ever since Silk Road. I think once the market saw how resiliant Bitcoin could be in the face of such bad news every time someone tries a scare tactic in the media the market bounces right back.
When the volatility hits strong hands enter. I think all that time
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People have such short memories…
China crash == silk road crash.
Just give it a few hours, it’ll recover 80% of what it lost.
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I didn’t have enough data to compare to Silk Road crash.
What’s the best charts tool to use for historical Bitcoin prices?
One thing I’ve sort of noticed is what I call the “bouncy ball” effect. If you throw a bouncy ball from a height it will bounce back very high and stay in the air for longer before it comes down again. With each progressive bounce the height and length between bounces shortens. Except with BTC the floor moves up each time.
Height = Low to High % Increase
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[url=http://bitcoincharts.com/]http://bitcoincharts.com/[/url] works great for me.
Favorite chart: 4 year MtGox, check “Log scale” and “percent scale”.
See that straight line? Linear growth on a logarithmic scale. I tell you it’s a thing of beauty.
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[quote name=“Tuck Fheman” post=“40218” timestamp=“1386271488”]
[img]https://24.media.tumblr.com/cdcd47e7b44ee52e4a7e532c378cca6f/tumblr_mxclttEeA21rtef2wo1_500.gif[/img]
[/quote]fantastic!!
;D
;D
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Wait a minute, wait a minute, WAIT A MINUTE!!!
The Chinese goverment stopped large BANKS from using their massive buying power to snatch up the currency out of the hands of the people and prevent a major disaster, namely the hoarding of Bitcoins at a time when it’s still not distributed enough yet, and this is somehow bad news?
What am I missing?
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If the government is putting obstacles, it is because they feel the power of virtual currencies.
I think even “Alibaba” is now accepting Bitcoins, and that’s saying something Alibaba is international market.!! :o -
[quote name=“Kevlar” post=“40221” timestamp=“1386272154”]
Wait a minute, wait a minute, WAIT A MINUTE!!!What am I missing?
[/quote]That Godzilla is Japanese and not Chinese?
[quote author=Kevlar link=topic=5441.msg40221#msg40221 date=1386272154]
The Chinese goverment stopped large BANKS from using their massive buying power to snatch up the currency out of the hands of the people and prevent a major disaster,
[/quote]BTW, you must have found a better translation than I did. I had no idea that’s what it meant.
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Yep, I was right.
This is GREAT news. Basically China has said, “Bitcoin is A-OK! Go ahead, just don’t refer to it as ‘China’s official currency’!”
Here’s the summary: This is legalization for Bitcoin in China to be bought and sold and traded even for goods and services by everyone except banks and money launderers as long as people don’t claim it is official Chinese currency.
THAT IS WHAT IT SAYS.
Here’s the full translation:
In order to protect the public’s property rights, to protect RMB’s official currency status, to prevent money laundering risk and to protect financial stability, the People’s Bank of China, Ministry of Industry and Information Technology, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission jointly issued “The People’s Bank of China, Ministry of Industry and Information Technology, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission Notice on preventing Bitcoin risk” (2013 no.289, “Notice” hereinafter)
The Notice clarifies the status of Bitcoin. Bitcoin is not issued by a monetary authority, it does not have the status of legal tender and obliged acceptance status of currency, it is not currency in the true sense. Bitcoin is a specified virtual commodity, it does not have equal legal status with currency, and it cannot and should not be circulated as currency on the market. But, the general public have the freedom to participate in Bitcoin trading as a commodity trading on the internet on the condition they carry their own risk.
The Notice requires, at this stage, all financial institutions and payment institutions must not use Bitcoin to set price for product or services, not buy or sell Bitcoins, not act as a market maker for Bitcoins, not underwrite insurance related to Bitcoin or cover Bitcoin in insurance, not directly or indirectly provide other Bitcoin related services, including registering, trading, clearing or settlement; not accept Bitcoin or use Bitcoin as payment tool; not start a Bitcoin and RMB or foreign currency exchange; not start a Bitcoin saving, trust or mortgage service; not issue Bitcoin related financial services; not use Bitcoin as the investment in trusts or funds.
The Notice requires, that Bitcoin websites that act as the main trading platform, should follow the Telecommunications Act and the Regulation on Internet Information Service, and register according to law. Also, because Bitcoin has a higher risk of money laundering and being used by criminals, the Notice requires the relevant organizations to follow the requirements of the Anti-Money Laundering Act and fully comply with the legally required anti-money laundering procedures like KYC and suspicious transaction reporting, to prevent Bitocin related money laundering risks.
To prevent virtual goods like Bitcoin using the name of “virtual currency” to over-promote, damaging the public interest and the RMB’s position as legal tender, the Notice requires financial organizations and payment organizations in their daily tasks to use the correct concept of currency, to emphasize on public education about currency, and to add to public financial knowledge education the contents of correct knowledge of currency, correct views of virtual goods and virtual currency, rational investment, control of investment risk and defending one’s financial safety, in order the public have correct views on currency and investing.
In the future, the People’s Bank will do its duty and continue to closely monitor the Bitcoin trend and related risks.
Below is the Notice
People’s Bank of China
Ministry of Industry and Information Technology
China Banking Regulatory Commission
China Securities Regulatory Commission
China Insurance Regulatory Commission
Notice on preventing Bitcoin risk
Recently, a so-called Bitcoin calculated using certain computer programs gained widespread worldwide attention, there are also organizations and persons in China taking this opportunity to promote Bitcoin and related products. In order to protect the public’s property rights, to protect RMB’s official currency status, to prevent money laundering risk and to protect financial stability, according to the People’s Bank Act, the Anti-Money Laundering Act, the Commercial Bank Act, Telecommunications Regulations etc, the following notice is made:
1 Correct knowledge of Bitcoin
Bitcoin has four main characteristics: no central issuer, limited quantity, no geographical limits and anonymity. Although it is called currency, it is not issued by a monetary authority, it does not have the status of legal tender and obliged payment status of currency, it is not currency in the true sense. Bitcoin is a specified virtual commodity, it does not have equal legal status with currency, and it cannot and should not be circulated as currency on the market.
2 Financial institutions and payment institutions must not start Bitcoin related business
At this stage, all financial institutions and payment institutions must not use Bitcoin to set price for product or services, not buy or sell Bitcoins, not act as a market maker for Bitcoins, not underwrite insurance related to Bitcoin or cover Bitcoin in insurance, not directly or indirectly provide other Bitcoin related services, including registering, trading, clearing, settlement; not accept Bitcoin or use Bitcoin as payment tool; not start a Bitcoin and RMB or foreign currency exchange; not start a Bitcoin saving, trust or mortgage service; not issue Bitcoin related financial services; not use Bitcoin as the investment in trusts or funds.
3 Strengthening regulation of Bitcoin websites
According to the Telecommunications Act and the Regulation on Internet Information Service, websites that provide Bitcoin services like registration, trading etc should register with the telecommunications regulation authorities.
The telecommunications regulation authorities, following the determinations and punishment opinions of the relevant management authorities, should close down illegal Bitcoin sites according to law.
4 Prevent possible Bitcoin money laundering risk
Branches of the People’s Bank should closely monitor the trends and activities Bitcoin and other similar virtual commodities with the characteristics of anonymity and easy cross-border access, seriously consider its money laundering risk, research and implement targeted preventative measures. The branches should include lawfully established organizations that provide Bitcoin registration or exchange services in its area into its anti-money laundering monitoring, and supervise them to strengthen their anti-money laundering monitoring.
Bitcoin websites should earnestly carry out their anti-money laundering duty, confirm the identities of their users, have them register using their real names, and register their name and ID card number. If financial institutions, payment institutions or Bitcoin websites discover suspicious transactions involving Bitcoin or other virtual commodities, they should immediately report it to the China Anti-Money Laundering Monitoring and Analysis Center, and cooperate with the People’s Bank’s investigation; if they find evidence of fraud, gambling, money laundering using Bitcoins, they should report it to the police.
5 Strengthening public education on money knowledge and investment risk
Departments, financial organizations and payment organizations should in their daily tasks teach the public the correct concept of currency, to emphasize on public education about currency, and to add to public financial knowledge education the contents of correct knowledge of currency, correct views of virtual goods and virtual currency, rational investment, control of investment risk and defending one’s financial safety, in order the public have correct views on currency and investing.
Financial monitoring authorities can set implementation details according to this notice
Would the People’s Bank branches please distribute this Notice to financial organizations and payment organizations in their area. Any new situations or questions arising from this notice please report promptly to the People’s Bank.
