{"id":12489,"date":"2021-09-24T14:54:04","date_gmt":"2021-09-24T14:54:04","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/chinas-crypto-crackdown-fundamentals-still-show-bull-market-continuation-bobby-lee-says-dont-panic\/"},"modified":"2021-09-24T14:54:04","modified_gmt":"2021-09-24T14:54:04","slug":"chinas-crypto-crackdown-fundamentals-still-show-bull-market-continuation-bobby-lee-says-dont-panic","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/chinas-crypto-crackdown-fundamentals-still-show-bull-market-continuation-bobby-lee-says-dont-panic\/","title":{"rendered":"China\u2019s Crypto Crackdown: Fundamentals Still Show Bull Market Continuation, Bobby Lee Says \u2018Don\u2019t Panic\u2019"},"content":{"rendered":"

The People\u2019s Bank of China (PBOC), the country\u2019s central bank, published a Q&A to its website which said that Chinese citizens participating in virtual currency exchange offshore is \u201cconsidered illegal financial activity.\u201d The PBOC also reiterated comments it had made in the past stressing that \u201cfinancial institutions and non-bank payment institutions\u201d cannot process crypto payments.<\/strong><\/p>\n

China\u2019s Central Bank Shakes Crypto Markets<\/h2>\n

The cryptocurrency economy shuddered on September 24 after China\u2019s central bank once again said decentralized virtual currencies are not welcome in the country. The PBOC has been saying things like this since 2013 and then four years later, they banned crypto exchanges operating domestically in 2017. In 2021, as the crypto economy reached new heights in value, the Chinese government cracked down on bitcoin miners<\/a> operating in the country. This caused Bitcoin\u2019s global hashrate to plummet<\/a> a great deal and many Chinese miners migrated to other regions.<\/p>\n

Today’s China news is the PBoC publishing a detailed Q&A with what seems to be mostly old news. This was taken up by the likes of Bloomberg who incredibly broadcast it as “the toughest blow yet to the trillion-dollar industry”. https:\/\/t.co\/C3Cw0QAenN<\/a><\/p>\n

\u2014 Alex Kr\u00fcger (@krugermacro) September 24, 2021<\/a><\/p>\n<\/p>\n

Now China\u2019s central bank is warning the citizenry of \u201cillegal\u201d behavior when it comes to cryptocurrency use. The PBOC posted a Q&A<\/a> to the central bank\u2019s website which declares virtual currency exchanges offering services to domestic residents are illegal and will be investigated. \u201cOverseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,\u201d a rough translation<\/a> of the comments noted. The translation also said that employees working for these international exchanges will be investigated. The PBOC further added:<\/p>\n

Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies.<\/p>\n

China\u2019s Seventh Warning, \u2018Onchain Fundamentals Still Indicate That Bull Market Continuation in Q4 Is Likely\u2019<\/h2>\n

Meanwhile, prior to the news from China, the crypto economy was in the midst of rebounding from the last downward slide after the initial Evergrande scare. In a note sent to Bitcoin.com News, the executive director at crypto\/digital assets hedge fund ARK36<\/a>, Ulrik K. Lykke, noted that this is the seventh time the Chinese government has cracked down on bitcoin.<\/p>\n

\u201cYet again, the Chinese government has cracked down on Bitcoin. Since 2013, it has done so at least seven times now \u2013 and twice this year already,\u201d Lykke stressed. \u201cWhile each time this happens, the markets react with a price drop, each time the effect is smaller and more short-lived. The \u2018China bans Bitcoin\u2019 story has gained almost a meme-like status in the Bitcoin community because of this. Investors should be careful not to make emotional decisions based on this trending news story as onchain fundamentals still indicate that bull market continuation in Q4 is likely.\u201d<\/p>\n

now all the poor people will panic sell<\/p>\n

rich people will buy it up<\/p>\n

then the value will skyrocket again leaving poor people holding the bag https:\/\/t.co\/7oKtGpUgDd<\/a><\/p>\n

\u2014 Tim Pool (@Timcast) September 24, 2021<\/a><\/p>\n<\/p>\n

Ballet Founder Bobby Lee: \u2018Not the Last Nail in the Coffin\u2019<\/h2>\n

Bobby Lee, the founder of one of China\u2019s first bitcoin exchanges and the cold storage card firm Ballet<\/a>, said that the PBOC warning from China is not the end. \u201cDon\u2019t panic: China has just banned bitcoin again. This time, the ban targets trading on offshore exchanges (using VPN), as well as using local agents or OTC services to exchange from CNY to & from USDT<\/a>. As bad as this may sound, it\u2019s actually NOT the last nail in the coffin,\u201d Lee remarked<\/a> on Twitter.<\/p>\n

when my friends ask me about china ban all i can say is \u201cah that happens all the time\u201d<\/p>\n

\u2014 Neeraj K. Agrawal (@NeerajKA) September 24, 2021<\/a><\/p>\n<\/p>\n

George Zarya, CEO at digital asset prime brokerage and exchange Bequant<\/a> discussed the subject with Bitcoin.com News on Friday as well. \u201cChina has been known to go to extremes with either very assertive statements and prosecutions to complete radio silence,\u201d Zarya told the Bitcoin.com newsdesk.<\/p>\n

\u201cThis time the point was made very clear that China will not support cryptocurrency market development as it goes against its policies of tightening up control over capital flow and big tech. For the institutional crypto industry, it won\u2019t change much as those who could leave already left and those who couldn\u2019t have either closed or gone under the radar. The retail market most likely has gone under the radar and will continue to support market volumes,\u201d the Bequant executive added.<\/p>\n

What do you think about China\u2019s latest statements about bitcoin and virtual currency exchange? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, ARK36, Ballet Founder, Bequant, Bitcoin China, Central Bank, China, China Bitcoin, china crypto, Chinese Government, George Zarya, PBOC, pboc crackdown, People’s Bank of China, Ulrik K. Lykke, virtual currency exchange<\/p>\n","protected":false},"excerpt":{"rendered":"

The People\u2019s Bank of China (PBOC), the country\u2019s central bank, published a Q&A to its website which said that Chinese citizens participating in virtual currency exchange offshore is \u201cconsidered illegal financial activity.\u201d The PBOC also reiterated comments it had made in the past stressing that \u201cfinancial institutions and non-bank payment institutions\u201d cannot process crypto payments.…<\/p>\n","protected":false},"author":0,"featured_media":12490,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-12489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12489"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=12489"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/12490"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=12489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=12489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=12489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}