Cryptocurrency control in China seems to be getting stronger since the ban on September 4th, 2017. In a bid to further limit the use of crypto in China, the National Committee of Experts on Internet Financial Security Technology (IFCERT) is now monitoring 56 platforms that offer over the counter (OTC) cryptocurrency transactions.
There has been significant news published in the last week regarding regulation around initial coin offerings (ICOs) especially around the Chinese Government's position on ICOs in China. Finally, at 3.00pm, September 4th this Monday, seven important Chinese government departments including the PBOC, issued an announcement to stop any ICO transactions and defined ICOs in China as illegal fund raising. Strict ICO regulatory is the right choice but is this ‘One-size-fits-all Policy’ the right answer?
For several weeks earlier this year, the PBOC (Peoples Bank of China) focused on bitcoin exchanges and halted crypto-currency withdrawals from the main exchanges; now ICO’s (initial coin offerings) have grabbed their attention. With ICO’s growing in popularity they are hard to ignore, In China since the beginning of the year there have been 65 ICO’s, that have raised over 2.6 billion RMB. As such, the PBOC has been considering banning ICO’s as they expose investors to a very high risk and “illegally absorb public funds.”
Over the past few weeks, little-known ICOs have grabbed the media's attention. ICOs, or 'Initial Coin Offerings', have become a new way for individuals and start-ups to obtain funding. A significant number of these ICOs are originating from China, so we decided to take a look at the dynamics behind these new funding vehicles.
Blockchain technology has become one of the hottest topics in China Fintech. So when Ant Finance, the most valuable tech unicorn company in the world, announced they were working on a blockchain-based solution for the charity space, it captured lots of attention - but what is behind the move?
Last week China’s central bank announced the possibility of launching its own digital currency on its official website. What is behind the government's push to launch a digital currency? Control money outflow? Better monitor cash transactions?
So over the past week, the internet has been aflutter with talk of Bitcoin and China again. A March 10th Goldman equity research note entitled 'The Future of Finance' offered a few comments about Bitcoin in China seem to have reignited the debate about Bitcoin's place in the Middle Kingdom. There are a lot of misconceptions out there, we felt we needed to set a few of them straight.
According to the latest hardware specifications of bitcoin mining manufacturers, even with it no longer makes sense for individuals to mine on their own - even in China where electricity is somewhat cheaper. Except if they are willing to wait a long time.
Ripple Labs announced partnerships with two U.S. banks, which will allow their customers to make same-day distributed money transfers at a very low-cost. How about partnering with Chinese banks? Could Ripple in China work with banks in a space where Bitcoin in China has struggled?
Bitcoin has seen its reputation in the eyes of the general public drop following various security breaches (i.e. Mt Gox) that have left many uncertain about the digital currency’s legitimacy and future. In addition, people are starting to question if Bitcoin really has a place in the market and if there is actually a problem that it solves – there is almost a malaise in the eyes of many who are getting tired about reading about it. Although Bitcoin might be hitting headwinds, security enhancements are underway and blockchain technology seems to be thriving.
Seven months after the PBOC's crackdown on bitcoin exchanges in China and we're seeing a resurgence in talk about what Chinese bitcoin exchanges are doing and where they are going. While accusations of falsifying trading data and questions about bitcoin's future in China still abound, China's bitcoin exchanges want to move on and forget the past, but are they going in the right direction?
We are pleased to announce the release of Zennon Kapron's book on the Past, Present and Future of Bitcoin in China. "Chomping at the Bitcoin" will be released on the 25th of August.
After couple of months of low trading volume and little news, BTC China, previously the largest and still one of the most prominent bitcoin exchanges in China has moved the goalposts for other exchanges (and the PBOC!) by launching the first physical Chinese Bitcoin 'ATM' at the IC Coffee Shop in Zhangjiang Hi-tech Park in Shanghai on Tuesday the 15th. In addition to the physical ATM, BTC China released a new mobile Web appcalled “Picasso ATM”, which is actually the main theme of the ATM launch.