Do not be afraid, China does not prohibit cryptocurrency

In 2008, after the financial crisis, it was published a document entitled "Bitcoin: the electronic system available equals", which describes in detail the concept of the payment system. bitcoin born. Bitcoin has attracted the attention of the world for the use of blockchain technology and as an alternative to minor currencies and commodities. Latest best technology after the Internet, blockchain proposed a solution to the problems that we could not solve, or ignored in the past few decades. I will not delve into the technical aspect, but I recommend a few articles and videos:

How Bitcoin works under the hood

A gentle introduction to the technology blockchain

Have you ever wondered how to actually work bitcoin (and other cryptocurrency)?

Fast forward to today, more precisely on 5 February, the Chinese government has just abnarodili new set of rules that prohibit cryptocurrency. The Chinese government has done in the past year, but many walked him through the foreign exchanges. Now he enlisted the almighty & # 39; Greater China & # 39 Firewall; to block access to foreign exchanges, trying to prevent citizens from exercising any operations with cryptocurrency.

To learn more about the position of the Chinese government, may retreat a couple of years ago in 2013, when the bitcoin is gaining popularity among Chinese citizens, and prices are rising. Due to price volatility and speculation, the People's Bank of China and five other government ministries published in December 2013 a formal notice entitled "Notice of the financial risk prevention Bitcoin" (see link at the Mandarin). several points were highlighted:

1. Due to various factors, such as limited supply, the anonymity and lack of central issuer, not because bitcoin & # 39 is the official currency and virtual goods, which can not be used on the open market.

2. All banks and financial institutions not allowed to offer financial services related to Bitcoin, or engage in trading activities related to Bitcoin.

3. All companies and websites that offer services related to Bitcoin, must register with the necessary government ministries.

4. Because of the anonymity and cross-border features of the Bitcoin, organizations that provide Bitcoin services, should take preventive measures, such as KYC to prevent money laundering. Any suspicious activity, including fraud, gambling and money laundering, must be reported to the authorities.

5. Organizations that provide services related to Bitcoin should inform the public about bitcoin and technologies that are behind it, and not to enter society as misinformation.

The inhabitants, the Bitcoin categorized virtual goods (such as game credits), which can be bought or sold in their original form and not communicate Fiat. It is impossible to determine how the money – that is the medium of exchange, unit of account and the value.

Despite the fact that the date is dated 2013 year, it is still relevant in relation to the position of the Chinese Government on Bitcoin and, as already mentioned, there are no signs of the ban on bitcoin and cryptocurrency. On the contrary, regulation, and education about bitcoin blokcheyn and will play a role in the kryptapraduktav Chinese market.

A similar notice was published in January 2017, again stressing that Bitcoin – a virtual product, rather than currency. In September 2017 a boom initial proposals coins (ICO) has led to the publication of a separate communication entitled "Notice of Financial Risk Prevention issued tokens." Soon ICO were banned, and Chinese exchanges have been investigated and eventually closed. (20/20 hindsight, they made the right decision to ban ICO and stop mindless gambling). Another blow was the Chinese community kryptovalyut in January 2018, when mining was faced with a serious & # 39; significant reductions, referring to the excessive consumption of electricity.

While there is no official explanation for the currency crisis, capital controls, illegal activities and to protect citizens from the financial risks – this is one of the main reasons that refer to the experts. Indeed, Chinese regulators have introduced tighter controls, such as limiting the output abroad and regulation of foreign direct investment in order to limit the outflow of capital and ensure that domestic investment. Anonymity and ease cross-border transactions also made cryptocurrency favored means of money laundering and fraud.

Since 2011, China has played a decisive role in the meteoric rise and fall of Bitcoin. At the peak of China accounted for more than 95% of the world & # 39; bitcoin trading volume and three quarters of mining operations. With regulators that take control of the trade and mining operations, China dominance significantly reduced in exchange for stability.

With countries such as Korea and India, which are on the repression, is now a shadow is aimed at future cryptocurrency. (Once again, I note here: cryptocurrency countries regulate, it is not prohibited). Without a doubt, we will see that in the coming months even more countries to join the crypto-turbulent market. Indeed, some order is long overdue. Over the past year cryptocurrency feel nechuvanasts pricing, and ICO taking place just a day. In 2017, the total market capitalization increased from 18 billion USD in January to a record 828 billion UAH.

Nevertheless, the Chinese community set up a surprisingly good mood, despite the repression. Internet and offline communities thrive (I personally visited a lot of events and visited some companies), and start-ups blockchain sprouting across China.

The country has become a lot of attention blockchain large firms, such as NEO, QTUM and VeChain. Startups such as Nebulas, High Performance Blockchain (HPB) and Bibox, also gaining a large amount of thrust. Even giants like Alibaba and Tencent, blockchain also examine opportunities to expand its platform. The list goes on and on, but you get me; it & HITGEE!

The Chinese government also takes blockchain technology and stepped up efforts to support the establishment of blockchain ecosystem in recent years.

In China, the 13th Five-Year Plan (2016-2020), it called for the development of advanced technologies, including blockchain and artificial intelligence. It also plans to strengthen research on the application fintech in the regulation of cloud computing and big data. Even the People's Bank of China also checks a prototype digital currency based on blokcheyna; however, because it is likely that this is some kind of centralized digital currency, which is a breccia encryption technology, its adoption by Chinese citizens have not noticed.

The launch of the Ministry of Industry and Information Technology of the Chinese technology and technology forum on the development of technology Blockchain, as well as the Chinese online trusted unit – some of the other initiatives of the Chinese government to support the development blokcheyna in China.

A recent report from China Blockchain Research Center under the name "Chinese blokcheyn-DEVELOPMENT REPORT 2018" in detail told about the development of blockchain industry in China in 2017, including the various measures taken to control cryptocurrency on the mainland. In a separate section of the report stressed the optimistic forecast blockchain industry and the massive attention it has received from the LCD and the Chinese government in 2017.

Thus, the Chinese government has shown a positive attitude towards blockchain technology, despite its introduction in cryptocurrency and mining operations. China wants to control cryptocurrency and China will gain control. Repeated action on the part of regulators were designed to protect its citizens against financial risk cryptocurrency and limit the outflow of capital. To date, the Chinese citizens lawfully cryptocurrency store, but they are not allowed to exercise any form of transactions; hence the ban on exchanges. As the market has stabilized in the coming months (or years), we will surely see a revival of the Chinese market kryptapraduktav. Blockchain and cryptocurrency go hand in hand (except for the private network where the marker is unnecessary). Thus, the country can not prohibit cryptocurrency, not prohibit strange technology!

One with which we can agree, is that blockchain is still in its infancy. Many interesting events is waiting for us, and now, of course, the best time to lay the foundation of peace with blockchain support.

And last but not least, HODL!