According to the Deputy Chairman of the people’s Bank of China pan Gunsan, China’s decision to ban the ICO and the operation of the cryptocurrency exchanges in the country was right.
He predicts that bitcoin will soon be subjected to a fatal attack or face bans around the world. Nevertheless, cryptocurrency markets have largely ignored his comments.
Pan expressed concern about how would look the markets for digital assets today in the case of continued dominance of China:
“If we don’t shut down cryptocurrency exchanges and has not taken strict measures regarding the ICO, if more than 80 percent of global bitcoin trading and fundraising by the ICO were China, what would have happened today? The answer to this question makes me terrified”.
Ban also expressed concern about the fact that bitcoin and other scriptactive is a dangerous bubble, and the technology itself is risky. He quoted economist Eric Pichet, saying: “only one thing Remains: to sit by the river and wait until by will float a corpse of bitcoin”.
Does anybody actually listens to these harsh statements?
The reaction or lack thereof is a sign of serious changes in the environment of digital assets in 2017.
There was a time when the sharp comments of the leaders of the Central Bank of China has lowered the price of bitcoin on several levels. But now it seems that the market lays in the price, the negative side of China and completely ignores it.
After the ban the collection of funds through primary placement of coins (ICO) in China in September, the price of bitcoin fell from 4500 to 3000 dollars. But it is not long continued, and after a few short downs, the company has grown and currently exceeds $ 11,000.
The Chinese government is intentionally trying to reduce the price of the bitcoin by adopting conflicting regulations to prevent speculation, as noted by Bobby Lee from BTCC in October. In the end, the efforts were in vain, and regulators decided to apply more direct measures.
But this does not mean that the pan is not right. At certain times his forecast about the puncture of the bladder may be performed, as it was in 2000 with the “dot com bubble”. But when it happens, it probably will clear everything that has no value, and leave the infrastructure for future revolutions.
Bitcoin company in China to migrate to the UK and other countries
Even Chinese companies, which previously dominated the crypto-currency auction, realized that in the homeland they have no future. Over the past few months, they moved their activities, personnel and experience in the most loyal jurisdiction.
Moved the ‘big three’ Chinese exchanges – headquarters Huobi now in South Korea and Singapore, OKCoin (OKEX and OKLink) has created a legal entity in Hong Kong and the UK, and BTCC with foreign orientation established BTCC UK Ltd.
December 4, Hypo Yang, Director General of the exchange ViaBTC and company registration in the Cayman Islands Viabtc Inc., also applied for the British registration of the company CoinEx Technology. The launch of the new exchange CoinEx “is expected in December”.
China still dominates in the industry of mining
It should be noted that mainland China still prevails in the bitcoin mining as a place for activities and for miners, and companies that develop the hardware. At the moment this is true, but there were rumors about the possible bans.
People’s Bank is most concerned that the savings of Chinese citizens are put on the blockchain tokens on a massive scale. Therefore, the puncture of the bladder can have more devastating effects than in other countries.
Although China itself is no longer the superpower of the cryptocurrency, companies established in the country, will continue to exist and will have a big impact on the industry.