September 20th, 2017
In my humble opinion...
I mean, he's not wrong.
China banning crypto is hilariously the best possible ad for Bitcoin itself.
— Stefano Bernardi (@stefanobernardi) September 19, 2017
Coin of the Day
Help fund the next blockchain unicorn
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Bitcoin execs and miners are potentially in life-threatening danger in China. No, we're not being dramatic.
We bet your day is going better than Chinese bitcoin executives. Yesterday, the Chinese government released a statement ordering all executives of bitcoin exchanges to stay in the country and cooperate, according to "informed sources" in the Chinese media. Which, we understand, is a little bit a shaky statement to be supporting. The founder of one of China's biggest exchanges, Huobi, claimed that they were told to "report to the authorities and cooperate with their work at any time". Uh, yikes.
How much danger are these execs in? There was chatter last week about Litecoin miners being executed by the Chinese government. So, potentially a lot. While some people claim that China's crackdown in mining is no big deal, the actual enforcement of these laws could easily become lethal. We all remember that ill-fated Wall Street Journal article that quotes an "anonymous source" (*cough* *fake news* *cough*) saying that China is completely banning cryptocurrencies. How true this is....is debatable. Gossip, at best.
All Chinese exchanges will shut down today (except two). Japan steps in.
It's finally happening. All Chinese crypto exchanges will stop their service because, according to the Chinese central bank, cryptocurrencies are apparently used for "money laundering, drug trafficking, smuggling, and illegal fundraising". Nice! Apparently the government sent a document (leaked on Weibo, see here) to crypto exchange leaders clarifying the timeline for shutting down their respective companies.
As of now, it appears Japan will be picking up most of the slack, since as of Sunday, it held over 50% of the crypto exchange market in the world. The future of bitcoin for China? Our guess is either a state-backed coin or intense regulation of the market. Both of which likely won't go over well with crypto traders...especially considering decentralization and anonymity are both out of line with China's systematic control of the internet, but are foundational building blocks for all thing bitcoin.