China orders immediate shuttering of Bitcoin exchanges

China has ordered all Bitcoin and cryptocurrency exchanges to cease trading by the end of Friday, causing a massive drop in its value worldwide. According to leaked documents and a series of statements from those running the local exchanges, China's regulators have told the exchanges verbally that they do not have a license to …

[Anonymous Coward]

Hmmm...

Best Korea have been named as a user of cryptocurrency to avoid sanctions.

They launch a missile.

China blocks cryptocurrency.

Could these be related?

Up next on Fox News: Bear shitting in the woods linked to far right trash pandas.

[Andy Tunnah]

This has been coming for a while. A fortnight ago China banned ICOs (El Reg covered it here https://www.theregister.co.uk/2017/09/05/china_bans_cryptocurrency_ico_raisings/ ). China was always going to move towards this.

Moving currency out of the middle kingdom is a challenge (it might be illegal ? Don't quote me on that). So bitcoin was seen as a great way to cover cash in a society with very prying eyes. So of course they were going to crack down on it. China would never allow something like bitcoin to become pervasive, as they can't control it. And China isn't one to let that slide.

The thing with the Norks is that even if they did buy bitcoin, how are they going to monetise it in a big enough way to make it worthwhile. They need to move tens if not hundreds of millions of dollars a WEEK. No exchange could facilitate that and it not be noticed. Sure they could pay one off..but in today's age, with so many electronic eyes, it'd last about as long as a gnat orgasm

[Anonymous Coward]

Fair point, I stand corrected.

I still think fox news will cover far right trash pandas though.

[A-nonCoward]

We already know that pandas are to blame

for that otherwise absurd surge in Python interest...

so you're saying panda users have a political agenda?

[katrinab]

There are exchange controls in China, but it is not completely illegal. You are allowed to take US$50,000 out of the country every year, and more than that if certain requirements are met. Transfers of more than CN¥200 (approx $30) have to be reported to the government.

[Anonymous Coward]

(it might be illegal ? Don't quote me on that)

I have a friend who taught English in various parts of China. He described bringing a suitcase of money out of the country as somewhat hairy.

[deadlockvictim]

To be fair

To be fair to the various customs' authorities, bringing a suitcase full of money is a red flag, no matter which country you are trying to get out / get into. It screams drug-money (or vice of your choice).

[Michael Hoffmann]

Already back up?

A glance at Coindesk (which came up first on google) says it's already back up by over 15% in the last 24 hours. Didn't check any of the others, I confess I'm quite cryptocurrency ignorant. Maybe somebody more knowledgable can comment on "what it all means".

[xXSwolGunzXx]

Re: Already back up?

Not much really. The expected lifespan of a Bitcoin exchange before it closes due to theft is 2-3 years.

[Nolveys]

Re: Already back up?

Maybe somebody more knowledgable can comment on "what it all means".

It means what everything always means, BTFD!

[erikborgo]

Stay small...

Bitcoin exchanges are massive targets, maybe the best strategy for cryptocurrencies is to segment their exchanges, operate in smaller areas thereby making breaches less profitable for hackers:

http://www.telegraph.co.uk/business/2017/07/27/liverpool-east-london-local-currencies-making-comeback/

[Anonymous Coward]

Re: Stay small...

you're saying the incentive to make a stable exchange is not there? that actually there might be profit in this hanky panky of exchanges crashing?

Hmmmm.

[heyrick]

Sub title: "cyrptocurrency"

[Craig 2]

Call me cynical but I'll wager a few people got filthy rich playing that currency dip!

[lorisarvendu]

"Call me cynical but I'll wager a few people got filthy rich playing that currency dip!"

You're not cynical at all. This is the way everyone makes money on the markets. A work colleague who knows I have an interest asked me what would happen if the price crashed, and would it mean the end of Bitcoin. Not at all, I said. If the price drops low, the first thing people do is buy when cheap. Which causes the price to go back up. From the look of things over the last day or so this is exactly what has happened. TBH Bitcoin does this every 18 months or so, and has been for the past 5 years. Every time Forbes, the FT, etc all predict the end of the "Bubble", and it never happens. Probably because in the case of most Bubbles, when the prices plummet, the company behind them goes bust and the shares become worthless. But Bitcoin doesn't have a company behind it. It has a software algorithm and no matter what happens, that will still be there.

[Charles 9]

Unless someone CRACKS the algorithm...

[Anonymous Coward]

QRL price will go crazy if that happens..

[Anonymous Coward]

Precisely.

Cryptocurrencies are zombie assets. There is nothing to kill because they are already undead. They are, however, extremely transparent. They don't promise anything, like say, the creditworthiness of homeowners in repackaged mortgage-backed securities, for example - a point seemingly lost on Jamie Dimon, if his recent commentary is to be taken at face value.

[Anonymous Coward]

Call me cynical

Your cynical. Happy now?

[Anonymous Coward]

Cynicism Confirmed

Aww yes, JP Morgan's CEO, Jamie Dimon, came out proclaiming BitCoin as a fraud. When it temporarily plummeted he and everyone in his company jumped in with both feet and bought up everything they could get their hands on. Typical banking crooks. True story .. look it up.

[lorisarvendu]

Re: Cynicism Confirmed

"Aww yes, JP Morgan's CEO, Jamie Dimon, came out proclaiming BitCoin as a fraud. When it temporarily plummeted he and everyone in his company jumped in with both feet and bought up everything they could get their hands on. Typical banking crooks. True story .. look it up."

I assume the same thing happened to the £ after the Brexit Referendum result. In fact instead of waiting for a dip and taking an advantage, why not cut out the middle man? Actually cause the dip by selling under the pretense of market panic. Oh...you mean that's what already happens...?

[MonkeyCee]

Re: Cynicism Confirmed

Dimon actually called it a Ponzi scheme. He also claimed that anyone caught trading it at JP would be fired on the spot, since it's clearly well dodgy. He was alsp quite pissed that his daughter specualted in BTC and has achieved returns many times greater than his "proper" funds have.

Bear in mind that this is the same bank that ran Madoff accounts. So they had full evidence that no investments where getting made, and did.... nothing. So much nothing that they copped a few billion in fines.

So Dimon can't spot a ponzi run through his own bank, but gosh damnit, BTC is evil.

JP Morgan doesn't hold the current title for "largest corporate fine ever", having been knocked off the top spot. But I'm assured they are working hard at regaining that position.

[Anonymous Coward]

I didn't even like Little Britain...

@MonkeyCee; "He also claimed that anyone caught trading it at JP would be fired on the spot, since it's clearly well dodgy."

Am I the only person who mentally read that last bit in a Vicki Pollard voice?

[teknopaul]

great thing about crypto currency...

is that governments can't artificially deflate or inflate the value.

oh.

[Anonymous Coward]

Wibbly wobbly

We all fall down

[lorisarvendu]

And back up we go again

$3,983 according to Preev. How's that terrible dip affecting everyone then?