Rumour: China bans payment companies dealing with Bitcoin exchanges

China Bans Payment Companies from Working With Bitcoin Exchanges, Sources Claim

Sources close to China's Central Bank today reported that the institution has banned third-party payment companies from doing business with bitcoin exchanges.

A reputable source told CoinDesk that the People's Bank of China (PBOC) met with most of the top third-party payment companies this morning.

The source said the meeting topic was unrelated to bitcoin, but digital currency became an important part of the discussion.

"PBOC, in no uncertain terms, directed third-party payment companies not to do business with bitcoin exchanges in China," they explained.

At the moment, these claims are still rumours, as neither the PBOC nor any payment company has issued a statement to confirm what was discussed and what the outcome was. However, our source revealed they got their information from various channels, including those people who were at the meeting.

"The writing's on the wall," said our source, adding:

"Going forward, from this day, third-party payment companies will most likely sever their ties with bitcoin exchanges."

They went on to say that if and when this happens, people will still be able to withdraw their money from Chinese exchanges, they just won't be able to deposit new funds.

"There's no need to panic and do a run on the bank. People will still be able to sell their bitcoins for local currency and then withdraw that currency," they concluded.

Back on 5th December, the PBOC issued a statement saying that bitcoin was not a currency and, therefore, banks and other financial institutions were not allowed to deal with the digital currency.

The PBOC also said that merchants could no longer price their goods and services in bitcoin and couldn't exchange their wares for bitcoin.

The statement did, however, leave a few doors open for bitcoin. It essentially said bitcoin exchanges are legal, people have the right to buy and sell bitcoins, and bitcoin companies should register with the ministry of information and industrial technology.

This was good news for bitcoin exchanges in China as they were not only given some degree of legitimacy, but they were exclusively allowed to deal with digital currency while banks and financial institutions weren't allowed to touch them.

Unfortunately, this didn't last long.

On a potentially related note, several Chinese bitcoin exchanges, including BTC China, have just reintroduced trading commissions. A statement on BTC China's site reads:

Dear BTC China valued customer: To stabilize the recent turbulent Bitcoin market and minimize potential market manipulation, BTC China will end the 0% trading fee promotion, effective immediately, and revert to the 0.3% trading fee. We deeply apologize for the sudden change. BTC China, December 16, 2013

CoinDesk has contacted PBOC and Chinese payment service provider Tenpay for comment, but no responses had been received at the time of publication.

http://www.coindesk.com/china-bans-payment-companies-working-bitcoin-exchanges-sources-claim/

 

Bitcoin represents a potential huge threat to current systems. Governments, banks and other oppressors of the free-market will continue to make moves to protect their monopolies.

 

I've always said, you don't need to attack cryptos themselves to **** them up.
You just need to make it illegal for anyone to process deposits and withdrawals from crypto exchanges.
Because the greatest weakness of cryptos is the fact they are still reliant on fiat to push prices and purchasing ability around.

 

Sure it would stop a lot of money flowing in so "easily", but wouldn't it ultimately push the price upwards, in the same way as illicit drugs or guns?

 

So glad all I have in btc-e is usd right now. been steadily waiting for this.

 

now would be a very good time to buy btc with those usd

 

"Now"?
You're kidding, right? This has got further to go.

 

Check out fiatleak usually China largest buyers (55%+ was going into China) now at "0%" going into China, USA now account for 99%+ of all BTC buying

http://fiatleak.com/

 

So what do you people think about this spectacular crash in price?
Is it the beginning of the end for bitcoins and its crypto cousins?

Will the people stand together and resist their governments' interference in their rights to barter with one another or will they refuse to allow government to dictate to them what they can and cannot do with the fruits of their labour?

I see this as a test case for freedom and human rights versus the modern backward trend towards totalitarian state rule and minimal individual rights.

Either way, this is a pivotal time in human history and if people make the wrong choices they could find themselves back in the "dark ages" very quickly

 

All in, no usd left. I have my sell points set. Now to wait again.
The drop came on Tuesday instead of the w/e this time. albeit because of a piece of scare news headlines. I don't think China will ever lead the way in liberty. btc's future is elsewhere for now surely.

 

Massive Chinese influence within the Bitcoin market. I put this graph together quickly.

 

Phew a week of holding fiat is over, I thought I had made a major error but nope, will take BTC @ 650 ALL DAY!!!

 

Watching Fiat Leak. BTC still being bought up in China!. BTC needs less of this Chinese volatility though, IMO.
But hey, all aboard. Govt/Bank oppression against freedom is part of the equation in this game.
The journey continues and the months will roll on.

 

Hmm. Seems like it's trending downwards no?

 

Yup, bankers and "got physical?" types, might want to make sure the Champaign is suitable chilled.

 

Well I'm pretty sure you guys have already made a profit.

 

Here is a link to the latest.

http://www.bloomberg.com/news/2013-...ompanies-from-clearing-bitcoin-news-says.html

The interesting thing about Bitcoin is that it is peer to peer. It is not reliant on 'payment providers'.
I'm sure, the Chinese Govt officials are smart enough to know this. Onwards we march.

 

True, so long as you never want to sell your bitcoins for fiat.