China Continues the Strife with Bitcoin Harming the Crypto Environment
According to reliable and trustworthy source the Chinese authorities and the People’s Bank of China has continued the warfare against bitcoin and other crypto currencies. The recent warning was given to the third-party payment companies.
According to reliable and trustworthy source the Chinese authorities and the People’s Bank of China has continued the warfare against bitcoin and other crypto currencies. The recent warning was given to the third-party payment companies. According to the Central Bank they should terminate and not be engaged in actions with bitcoins or servicing virtual coin users. It means that the bank prohibits the companies to work with bitcoin exchange services. While this statement remained a proven rumor the price of the digital coin has dropped by around 200 dollars and was unable to gain a higher position after the official confirmations from several firms.
The theme was touched by the representatives of the People’s Bank of China during a meeting with the third-party payment companies. The main topic of the conversation was not relayed to bitcoin, but became crucial for it. The reliable source noted that the new advice that has to obeyed considers future deals. The deposit of new funds is becoming impossible, but the withdrawal remains safe.
The warnings first occurred on the 5th December, but were interpreted in a more positive way by experts. Same happy mood was picked up on the “Inside Bitcoin” conference in Las Vegas last week. The ban also means that merchants will not be able to accept the coin for their products and services, but the users should not hurry to their banks – the possibility to collect the money will be opened for a while. Still the citizens are allowed to buy and sell coins and new exchanges can be registered at the ministry of information and industrial technology. The optimists of the virtual society understand it as a positive trend – there is some legitimate opinion on the currency, but the official financial institutions stay outside.
It is a pity that this opinion is not shared by everyone. The BTC China and other exchange service have already reintroduced fees for users that do not become evidence of the forecasted blossom.
Today, on the 17th December several companies participating in the meeting have approved the rumors of yesterday. PayPal, Alipay, TenPay all confirmed the news. This all provided a drop of price of the bitcoin equal to 200 dollars. From $876 the price went down to $645, experienced a small rise up to $771 to make a second decrease. The final loss was equal to 22%. It is not a surprise as China was forecasted as the biggest player on the bitcoin market. The reasons were simple – the emerging and developing economy, huge population, interest in modern technologies. The Yan even out powered the Dollar as determining pair for BTC. Jaron Lukasiewicz agrees that current event will impact the price for a long time in future. Just three days ago some users reported rapid transactions from banks, like China Merchants Bank, for funding a bitcoin account. Now a common result for similar action is an error or termination of request.
At present time the community is awaiting an official comment or statement published by the People’s Bank of China. Their revelation will be the determining position for other banks of the country. Some information sources from China operating a bitcoin service, believe that nothing more can or has to be done by the authorities to reduce interest of the residents in the crypto currency. The situation is similar to US-based poker–platforms – the government prohibited financial institutions for holding the funds and the idea collapsed. The same is being performed in China – there is no official ban, but the users due to limitation are unable to function in the coin community. The Chinese Dragon has closed its jaws around the virtual coin, who will definitely seek for a method to release itself to gain more power to return to the market in the closest future.