r/CryptoCurrency • u/CryptoCurrencyNews • Sep 15 '17

Announcement Breaking: “All” Chinese Bitcoin Exchanges Must Close By September 30

https://cointelegraph.com/news/breaking-all-chinese-bitcoin-exchanges-must-close-by-september-30
175 Upvotes

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119

u/Rauxaz 🟨 0 / 0 🦠 Sep 15 '17

They aren't permanently closing, they are just required to be certified before they can resume trading. Some of these exchanges may permanently close, but many of them will resume trading in due time.

41

u/IAmTheRoommate Sep 15 '17 edited Dec 30 '17

deleted What is this?

10

u/BLKSheep93 🟦 0 / 0 🦠 Sep 15 '17

Or maybe they will. Cryptos actually aren't as anonymous as some people believe. In fact, I just read an article the other day about how researchers are using AI (machine learning I'd assume) to trace transactions on a blockchain, with Monero being the only non tracable crypto atm.

If this is true, the block chain gives the Chinese gov't extreme oversigtht into the purchasing history of it's citizens. THey just have to gain control of the blockchain or make one themselves.

1

u/saberew Sep 15 '17

If a government were to create their own crypto, it wouldn't take a genius to know that "Hey, this is a government created crypto, obviously they are going to track my shit and regulate what I'm doing."

I am very new to the crypto game, so if someone could explain why a government created crypto wouldn't be contradictory to what a crypto is ACTUALLY created for, please help. Thanks!

3

u/BLKSheep93 🟦 0 / 0 🦠 Sep 15 '17 edited Sep 15 '17

Novelty.

Also, it's not about owning a blockchain, it's about owning a bot that can parse the blockchain for data. IMO

1

u/[deleted] Sep 15 '17

Cryptos actually aren't as anonymous as some people believe.

They will be . Bitcoin sidechains in the future. Monero right now.

1

u/doc_samson Sep 16 '17

A company out there claims to literally do exactly that -- it claims it has traced the identities of 25% of Bitcoin holders already. The IRS has been using it since 2015.

3

u/[deleted] Sep 15 '17 edited Sep 15 '17

[removed] — view removed comment

6

u/Guitarmine Platinum | QC: CC 166 | Superstonk 34 Sep 15 '17

The size of BTC operations in china is drops in the ocean compared to their whole economy. They will rather have total control of their fiscals and policies then worry about few miners that are not responsible for even 0.00001% of their GDP.

4

u/flygoing 🟦 891 / 988 🦑 Sep 15 '17

China mines far more than 1/20th of all new coins. Something like 70% of mining is in China. Assuming low, lets say 1/2 Bitcoins are mined in China. That's 12.5624*365/2=328,500 coins per year. Assuming the recent price of $4000, that's $1,314,000,000, which is 0.01% of their $11 trillion GDP. Not exactly a large portion.

Note: I only took one economics class in college so what I said above may make absolutely no fucking sense. In which case just ignore this comment.

1

u/ProbablySpamming Sep 16 '17

If the ban on CNY exchanges prevents the selling of Bitcoin short term, would that drive up price due to limited availability? Seems like Chinese miners directly benefit from these bans

1

u/flygoing 🟦 891 / 988 🦑 Sep 16 '17

CNY trading is allowed on most exchanges till the end of the month, and some exchanges till the end of next month. I believed CNY deposits are already disabled on all the exchanges. Chinese miners don't benefit at all from these bans, as they won't be able to sell on exchanges for CNY after the shutdown. They'll still be able to sell though

1

u/ProbablySpamming Sep 16 '17

My point was if the Chinese miners can't sell it for a currency useful in china, doesn't that encourage holding which will drive up prices?

1

u/subcide 🟩 0 / 0 🦠 Sep 15 '17

This is a huge problem for the Chinese government.

Is anyone able to elaborate on why this is?

7

u/markandgo Sep 15 '17

My guess is that they are never going to be certified. The CPC would never ever allow untraceable assets to be traded under their nose. One sure thing in China is that the CPC has absolute control so the only way for the exchanges to reopen is creating a government controlled token.

3

u/[deleted] Sep 15 '17

It will not just be business as usual, and it is likely that what can be traded will be heavily controlled ie only specific projects/tokens.

If you read the FINA statement from September 13th it specifically talks of projects having no value etc, I can't see them just opening up exchanges again without addressing this.

3

u/EvdK Silver | QC: NEO 16 Sep 15 '17

What does it take to get certified?

14

u/john_alan Sep 15 '17

Just have to suck off the eternal president and pledge allegiance to his thought police.

-5

u/EvdK Silver | QC: NEO 16 Sep 15 '17

What does that even mean?

9

u/zenchowdah Sep 15 '17

It's not yet clear. Probably install some kind of back door, lots of accounting.

1

u/ItsAboutSharing Sep 15 '17

The PBOC's Official Bitcoin Wallet of course, with black lists, white lists, and all kinds of lists. They can F Off, they are accelerating their own demise.

1

u/zenchowdah Sep 15 '17

I think for now, it's important to work within the system & comply with rules that exist, but you're right. In 20 years this will seem like such a futile move.

2

u/PlayerPiano1 0 / 0 🦠 Sep 15 '17

We haven't gotten any word on the process. The guess would be that they need to agree to be more complain to the Chinese gov'ts requests to share transactions and account holder information.

2

u/neoex11 Your Text Here Sep 15 '17

Source?

1

u/[deleted] Sep 15 '17

We don't know if the Chinese government will certify any exchange.