China To Crack Down on Cryptocurrency Trading Loophole

China is opening a new front in its battle against cryptocurrencies, targeting platforms that allow the nation's investors to trade digital assets on overseas exchanges, Bloomberg reported Tuesday citing people familiar with the matter said. From a report: Regulators are planning to scrutinize the Chinese bank and online-payment accounts of businesses and individuals suspected of facilitating trades on offshore cryptocurrency venues, the people said, asking not to be identified because the information is private. The accounts' owners could have their assets frozen or be blocked from the domestic financial system, the people said. The measures are designed to cut off one of the few remaining avenues for Chinese citizens to buy digital assets. While the country was once home to the world's most active cryptocurrency exchanges, authorities banned the venues last year and have since moved to block access to platforms that offer exchange-like services.

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[Anonymous Coward]

So I go to see my urologist the other day and he tells me "son, you really have to stop masturbating."

"Why?" I protest to the doctor.

"So I can examine you."

Not good

[110010001000]

This is a big blow for Bitcoin. It is only up 4% on the news.

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[110010001000]

I don't think so. Things can only go up. My tulips are worth several million dollars already.

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[slazzy]

As some countries ban crypto currency trading, they actually increase it's value. It's a sign that China will be cracking down more on getting money out of the country, people will be looking hard for ways to buy crypto in China so they get money out. Local Bitcoins anyone?

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[phantomfive]

It's possibly up because Chinese are now rushing to buy it before it becomes illegal. Which means there will be a corresponding drop later on.

How effective is blocking exchanges?

[ctilsie242]

How effective is blocking cryptocurrency exchanges? To me, this seems like it will work on stopping trade in cryptocurrencies, because they cannot be exchanged for things of real value, unless one exchanges to another commodity via a foreign service, then exchanges that commodity into the domestic country's currency.

How is this a loophole?

[schwit1]

The cryptocurrency exchange/system is working as envisioned.

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[Anonymous Coward]

Its a loophole on the Chinese law, not on the crypto system. China forbade cryptocurrencies because they can't track the assets (and, to all honestly it does increase a lot of risks regarding money laundering, illegal activities, corruption etc.) but foreign exchanges allowed people to circumvent that law. Thus, its a loophole to that law.

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[Gravis Zero]

How is this a loophole? The cryptocurrency exchange/system is working as envisioned.

This is a legit question because the answer is that it's a loophole for Chinese law. More specifically, China has several laws that are designed to empower the government to prevent money from leaving China [chinalawblog.com] (and thus it's economy). Cryptocurrencies enable people to convert their money into a form that can be electronically transferred then converted back into another currency, completely undermining their efforts to keep wealth inside China.

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[war4peace]

I'm going to give you the honorary nickname of "Walking Eagle" - because you're like a bird so full of shit it can't fly.
Pretty much everything you said is incorrect. Wow.

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[war4peace]

Oh sorry but I simply stopped giving a shit, if I see a post such as the entry I previously responded to.
When someone comes and vomits wrong information all over the place, which can easily be proven wrong with a simple Google search and 5 minutes of attention, I won't spend any time doing the work for them.
It's common courtesy to enter a discussion with a minimum of knowledge. If you don't show it tough luck. I call what you wrote "retarded" (because it is) and move on.

Unpossible!

[LynnwoodRooster]

I've been told numerous times that China was not cracking down on cryptocurrencies, that all is Good and Fine with cryptos!

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[LynnwoodRooster]

Proof or STFU. China banned crypto trading inside China; this is now banning it outside China for Chinese nationals.

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[LynnwoodRooster]

Thank you for confirming no proof! Good to know my troll doesn't have any facts...

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[LynnwoodRooster]

I did? Where? So when did you stop beating your wife? How much anthrax did you grow in your lab? Did you finish your latest meth cook?

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[LynnwoodRooster]

Aww troll, you have to do better than that! I posted this link [googleusercontent.com] back in December, I believe, and it confirms that crypto exchanges were banned in China. No way to use them - including Bitcoins. And now they're going after overseas use as well. Sucks to be you, troll! See, I have actual facts on my side, you have "trollishness".