China Bans Bitcoin Executives From Leaving the Country, Miners “Preparing for the Worst”

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Chinese media is reporting executives of crypto exchanges have been ordered to not leave the country with a very rough translation stating:

“A number of informed sources say the executives of special currency trading platforms are not allowed to leave Beijing to cooperate with the investigation. In accordance with regulatory requirements, trading platform shareholders, the actual controller, executives and financial executives need to fully cooperate with the relevant work in the clean-up period in Beijing.”

Australia’s Financial Review (AFR) says the above has been confirmed with them by “a source close to one of the biggest exchanges, Huobi,” which told them its founder, Li Lin, was required to “report to the authorities and cooperate with their work at any time.”

The draconian measure is undertaken following a decision by China’s Communist Party to close down all crypto exchanges, with trading volumes in the country dropping considerably.

Chinese trading volumes now account for only around 5% – 10% of bitcoin’s or ethereum’s global trading volumes. With price there significantly lower. Leading CoinMarketCap to exclude them from calculations of average prices.

Chinese exchanges fall significantly in rankings by trading volumes.

China, therefore, appears to have isolated themselves, while the rest of the world seemingly moves on, but questions are being raised regarding miners, with some 80% of their operations centralized in the country.

An investor in Chinese bitcoin mines told AFP: “All of us didn’t believe they would shut down the exchanges so we are preparing for the worst.”

China’s decision to shut down exchanges took many by surprise and was very unexpected with the authoritarian government giving no hint they plan to take such draconian measures.

Questions therefore are being raised on whether they might do so for miners, a $2 billion importing industry which may find it difficult to operate without the ability to sell their bitcoins on the market.

That is especially so because WSJ is suggesting the ban is a total ban, with apparent plans to declare even Off the Counter (OTC) trading as illegal.

In which case, it would be as good as impossible for Chinese miners to operate as they would be unable to cover their considerable expenses without the ability to exchange their coins for fiat currencies.

Which is why many expected OTC trading to be allowed, with Chinese media so reporting initially, but it’s not clear whether they have changed their mind.

As such, miners are seemingly preparing for the worst, with some thinking of relocating to neighboring countries or to very cold areas, such as Iceland.

 

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9 Comments on "China Bans Bitcoin Executives From Leaving the Country, Miners “Preparing for the Worst”"

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if banned, china miners can always try mining bitcoin with decentralized supercomputer called Elastic (XEL).
https://www.youtube.com/watch?v=oo4bn550YEk&list=PLUffrveXxK6lNyYwYjNcUpbbaQaJZ0XSU

OTC means Over The Counter, I’m guessing you mixed it up because OTC is “Off” exchanges.

probably more fake news so JP Morgan can buy more coins! They bought 95 bitcoins when value dropped!

Fucking china FUD !!!

Well, this is a big surprise. Banning crypto seems so backward, but they’re desperate to stop capital leaving the country.

Hello

literally could kill bitcoin. eliminating ~70% of the hashrate would render the network useless, which is a core proponent of its value.

there is no solution other than POS, which btc doesnt have and eth is at least a year or more away from.

The difficulty would adjust within a week making it more profitable for others to mine it. That’s not only great, it’s fantastic.

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