Shed blood like water! Bitcoin China crash, domestic players busy "moving brick" arbitrage

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Shed blood like water! Bitcoin China crash, domestic players busy "moving brick" arbitrage

2017-09-18 09:53:47 444 ℃

Recently, the regulatory requirements of the domestic bitcoin trading platform "all shut down, and in the near future to withdraw from the market," the news of the uproar. The evening of September 14th, China's first bitcoin exchange bitcoin China announced that bitcoin China digital asset trading platform immediately stop new users registration, and will stop all transactions in September 30th. Following bitcoin China announced the cessation of trading, 15, the fire currency network, OKCoin currency line, micro bit and other platforms have announced that it will stop trading in the near future.

So, after these bitcoin trading platform shut down, what should the domestic investors do?

Bitcoin trading platform will be closed down?

Judging from the recent intensive action of the regulatory authorities, the bitcoin trading platform has been in danger of early signs.

The evening of September 13th, China Internet Finance Association issued a so-called "prevention bitcoin virtual currency risk prompt, pointed out that the so-called" virtual currency bitcoin has become a money laundering, drug trafficking, smuggling, illegal fund-raising and other illegal and criminal activities, investors should be vigilant, find clues to the criminal activities should be reported immediately, and stressed that "all kinds of so-called" coins "trading platform in our country there is no legal basis for the establishment of.

The evening of September 14th, the first domestic bitcoin trading site bitcoin Chinese announced that bitcoin China digital asset trading platform will stop new user registration, and will stop all transactions in September 30th. At the same time, bitcoin China's ore pool (national pool) and other business will not be affected, continue to operate normally.

Bitcoin Chinese said that this decision is based on September 4th issued the "people's Bank of China Chinese central network information office and the Ministry of information industry SAIC will commission CIRC spirit on the prevention of financing risk notice" token issued documents, after bitcoin China team after careful discussion made.

In bitcoin Chinese announced the first stop after the transaction, other virtual currency exchanges have also followed suit. September 15th, the fire currency network, OKCoin currency line, micro bit and other platforms have announced that it will stop trading. The fire currency network, OKCoin coin bank said, will inform all users to stop trading on September 30th, on October 31st, in order to gradually stop all digital assets against the RMB trading business. At the same time, the virtual currency prices continued to fall across the board, bitcoin quotes have fallen below 18000 yuan mark.

Bitcoin prices tumbled

Since September, Chinese regulators have blocked ICO and shut down bitcoin exchanges in the country. The regulation of digital money has never been seen before.

This regulation directly led to bitcoin prices plummeted. Eastern wealth Choice data show that since September 1st, bitcoin fell by more than 30%.

(data sources: Eastern wealth, Choice data)

"According to this trend, bitcoin prices may fall back within 10 thousand yuan within a month, that is, 50%." Zhang Hongbin, an independent investor, said in an interview.

Supervision of a people. All bitcoin transactions in the chat room a groaning.after: some people lost all net worth in currency speculation, now people overnight in a nice hobble; I lost hundreds of thousands; various OTC group instant active, people everywhere micro signal, "Cheng received a variety of shelves and can not exchange currency" people hate gas; more people believe that the timing of the hunters.

Domestic players busy "moving brick" arbitrage

Because bitcoin prices are different at home and abroad, this is the birth of a new business - "moving bricks."". The so-called bitcoin is to move bricks, bitcoin in different exchange between maneuvers, earn price difference arbitrage.

Different countries bitcoin regulatory policies, China bitcoin prices have been due to strengthen supervision, and slightly lower than overseas, a lot of people shot aimed at this opportunity, the platform in the country to buy coins, and then transferred to the foreign bitcoin platform, then cash deposit to offshore accounts.

In the days before and after the media exposed China will ban bitcoin exchange renminbi transactions, domestic prices plummeted, the lowest price only for overseas price 80%, this creates a huge arbitrage space.

"It's the best time to move bricks" on September 9th -10, can be said to be in "an industry source said.

And in September 14th, with bitcoin China announced that it would stop all trading business, another arbitrage opportunities come.

"Foreign domestic $3500, equivalent to 3200 knife, it is like nature itself move brick opportunity," a bitcoin game player said in a circle of friends.

But an overseas bitcoin exchanges said that this "moving bricks" is a technical activity, or there is a threshold. First of all, in order to anti money laundering and combating the financing of terrorism, KYC steps outside the bitcoin exchange to do better, such as the Hongkong stock exchange will require the user to live in Hongkong, to provide relevant proof; secondly, in the presence of arbitrage opportunities arise when the mouth, need a lot of liquidity, the financial requirements of investors is relatively high.

However, there are still people who gain profit in risk. Many investors said that their friends or around the ready hunters. "There are trading platform, opened the international station, account universal, the future can participate in overseas transactions through the international station."."

Off market trading is getting crazy

In addition, under strict supervision, bitcoin gradually converted from floor trading to over-the-counter trading. At present, the WeChat group, QQ group as the carrier bitcoin trading unusually hot, and in QQ search, Xiaobian casually enter bitcoin OTC, there will be a variety of bitcoin OTC trading group.

Small amount of online trading, auction money, payment, receipt, evaluation of the entire process, just like Taobao shopping; large volume, line down face to face trading, one hand currency (on-site transfer to the buyer's wallet address), one hand pay.

Well-known financial columnist Xiao Lei expected, some investors will in the end of the month before shutting down the platform directly regardless of the cost of sale, will not participate, such investors if August high rushed in, the loss will be very heavy; there are some bitcoin investors looking to hold, even if not to sell has hit the hands; some may find the next line of diplomatic easy; there is a part of investors to participate in the international market, after all, foreign trading platform does not shut down. But Xiao Lei also pointed out that in the current foreign exchange control and network information management policy framework, to the foreign trade platform is not easy, but the difficulty of transactions increased significantly, after all, bitcoin prices and exchange rate fluctuations are large.

Professor Liu Xiaolei, a professor at Peking University Guanghua School of management, points out that the virtual currencies such as bitcoin and the etheric currency originated abroad, and that they have considerable trading volume in foreign markets. Japan, Canada and other countries have adopted relatively loose policies in comparing special currencies. In view of the fact that bitcoin and other encrypted currencies are centralized in point to point trading, it is neither realistic nor feasible to ban bitcoin.

What is the market attitude in foreign countries?

The token on the cusp of a recent round of welcome hit again. Multinational regulators have expressed their views to strengthen supervision, industry experts also frequently audible, suggesting that the seriousness of the risk worthy of attention to investors.

In September 12th, JP Morgan CEO Jamie Dimon gave investors poured a pot of cold water, called crazy bitcoins will eventually be in the pursuit of this "fraud" in Waterloo suffered. At the same time, he will bitcoin heat compared to seventeenth Century "tulip fever", when people invest crazy useless tulips, but nothing came, proved to be the economic bubble.

Financial Conduct Authority (FCA) said in a statement, "ICO is a high risk speculative investment."".

However, in the international market, some countries have standardized the operation of digital currency through supervision.

South Korea's bitcoin exchange is one of the few major sources of digital currency for encryption, and trading volumes on platforms such as Bithumb, Coinone and Korbit are huge. South Korea is not sure the legal status of bitcoin. However, in the local police seized a suspect 216 bitcoin jurisprudence, the local court made it clear that the seizure of bitcoin assets is illegal. In South Korea, there are already ENT, Cash and other block chain technology used for Star Trading projects, there are specific implementation scenarios available.

Japan, Singapore and Australia are more friendly. In April 1st this year, the revised bill of payment service came into effect in Japan, which characterized the digital currency as a legitimate payment scheme, the same as the management of the local payment companies in japan.

The amendment also revised the proceeds of Crime Prevention Act, requiring bitcoin exchanges to implement a more stringent KYC policy (Know your customer) than at present. The exchange must begin to verify the identity of the account holder, keep the transaction record, and report suspicious transactions to the regulatory authorities.

"In all digital currencies in Australia, financial licences are needed, according to the national anti money laundering requirements, and the Singapore government defines them as commodities," said Xu Xu, founder of Australia's silver capital.

In the United States, digital money is defined as securities. In July 2017, the securities and Exchange Commission issued a notice saying that the digital assets issued and sold by the virtual organization were included in the scope of the federal securities law. But the states of the United States are different and complicated.

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