| From: Glenn Petersen | 9/24/2021 7:33:08 AM | | | | | | China’s central bank says all cryptocurrency-related activities are illegal, vows harsh crackdown
PUBLISHED FRI, SEP 24 20215:36 AM EDT
UPDATED 6 MIN AGO
Ryan Browne @RYAN_BROWNE_
KEY POINTS
-- The People’s Bank of China said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited.
-- Overseas cryptocurrency exchanges providing services in mainland China are also illegal, the PBOC said.
-- It’s not the first time China has gotten tough on cryptocurrencies. Earlier this year, Beijing announced a crackdown on crypto mining.
China’s central bank renewed its tough talk on bitcoin Friday, calling all digital currency activities illegal and vowing to crack down on the market.
In a Q&A posted to its website, the People’s Bank of China said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited. Overseas crypto exchanges providing services in mainland China are also illegal, the PBOC said.
“Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,” the PBOC said, according to a CNBC translation of the comments. Workers of foreign crypto exchanges will be investigated, it added.
The PBOC said it has also improved its systems to step up monitoring of crypto-related transactions and root out speculative investing.
“Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies,” the bank said, reiterating past comments.
The price of bitcoin sank over 3% on a 24-hour basis, last trading at around $42,239, according to Coin Metrics data. Ethereum, the second-largest digital asset, fell 7% to $2,860.
Stocks with heavy exposure to crypto also slumped in premarket trading, with Coinbase down by nearly 4%, MicroStrategy slipping 5% and Riot Blockchain down over 6%.
It’s not the first time China has gotten tough on cryptocurrencies. Earlier this year, Beijing announced a crackdown on crypto mining, the energy-intensive process that verifies transactions and mints new units of currency. That led to a sharp slump in bitcoin’s processing power, as multiple miners took their equipment offline.
The CBOC also ordered banks and non-bank payment institutions like Alibaba affiliate Ant Group not to provide services related to crypto.
In July, the central bank told a Beijing-based company to shut down for allegedly facilitating digital currency transactions with its software.
—CNBC’s Evelyn Cheng contributed to this repor
China central bank vows harsh crackdown on cryptocurrency industry (cnbc.com) |
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| To: w0z who wrote (3784) | 9/24/2021 12:08:34 PM | | From: Elroy | | | | China’s central bank renewed its tough talk on bitcoin Friday, calling all digital currency activities illegal and vowing to crack down on the market.
In a Q&A posted to its website, the People’s Bank of China said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited. Overseas crypto exchanges providing services in mainland China are also illegal, the PBOC said.
cnbc.com
But then in the same articles there's this.....
The PBOC said it has also improved its systems to step up monitoring of crypto-related transactions and root out speculative investing.
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Does this mean there are zero crypto exchanges in China...Or Hong Kong?
It's strange if this is a nothingburger that the price of Bitcoin and Ether are dropping so much in response. |
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| To: Elroy who wrote (3785) | 9/24/2021 12:20:22 PM | | From: w0z | | | | In a way I hope this is true. China will chase away their most talented programmers to greener pastures in the EU and the US.
It also makes me wonder what the PBOC will do with their digital Yuan project which was reputedly leading the world in CBDC technology.
BTW the above link references MIT's Digital Currency Initiative (DCI). However the real work is being done by MIT's Connection Sciences Department (the heavyweight behind the original TCP/IP protocol which opened the internet in the mid-90s...remember the walled gardens of Compuserve, AOL, Yahoo, etc? Quant and MIT are spear-heading the effort with assistance from US Gov (a.k.a. Boston FED), Intel, Juniper, and others).
Incidentally Quant just recently hired Rafael Belchior of Technico Lisboa (University) who you will note is listed as a co-author of the paper linked above. |
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| To: w0z who wrote (3786) | 9/24/2021 12:43:46 PM | | From: w0z | | | | Open Digital Asset Protocol ( ODAP):
Internet Engineering Task Force (IETF)
M. Hargreaves Quant Network
T. Hardjono MIT
R. Belchior Technico Lisboa (now Quant Network)
May 9, 2021
Abstract: This memo describes the Open Digital Asset Protocol (ODAP). ODAP is an asset transfer protocol that operates between two gateway devices. The protocol includes a description of virtual or digital assets held on distributed ledgers in an open and interoperable format, a session negotiation part and message passing flows between gateways connecting disparate distributed ledger technologies (DLTs). |
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| To: w0z who wrote (3786) | 9/24/2021 2:36:59 PM | | From: Glenn Petersen | | | | A rare unforced error on the part of China. Brain drain.
I am sure that the digital yuan will do fine, but it will inevitably be second to the inevitable digital dollar. |
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