Does China ban Cryptocurrencies?

New anti-anonymity regulations for blockchain firms

The Cyberspace Administration of China (CAC), the official internet regulator organisation, has introduced new anti-anonymity regulations for blockchain firms that are operating in the country. The announcement was published on the CAC website on Thursday, January 10th 2019.

Not surprisingly the CAC guidelines “…contribute to the healthy development of the industry.” and will enter into force on February 15th, 2019.

Let´s have a closer look: The document describes the firms that are subject to regulations as websites or mobile apps that provide information and technical support to the public using blockchain technologies. As soon as the regulations come into power, they will be obliged to register their names, domains and server addresses at the CAC within 20 days.

Official announcement of Cyberspace Administration of China:

The guidelines require blockchain startups to allow authorities access to stored data, and to introduce registry procedures that would require ID card or mobile numbers from its users. Moreover, they will be obliged to oversee content and censor information that is prohibited under current Chinese law.

If a firm fails to comply with the regulations, it might face fines from 20,000 to 30,000 yuans (€2.600 and € 4.000). In case of serial offences, the company might face a criminal investigation.

China first released draft guidelines in October 2018 for blockchain companies, which also contained recommendations that sought to eliminate anonymity in blockchain.

At the time, Asian newspaper The South China Morning Post wrote about an anonymous open letter that alleged sexual harassment at a top Chinese university that was published on the Ethereum (ETH) blockchain in April. The media outlet believes the publication of the letter could be a motivation behind the new regulations.

China is currently mainly piloting blockchain legislation in the three regions Beijing, Shanghai and Guangzhou. According to a December report by local finance publication Securities Daily, there are 11 blockchain-related policy projects concentrated in these areas.

In the meantime, the country has upheld a de facto ban on domestic crypto trading since 2017, which was completed in February 2018 when the government added international crypto exchanges and initial coin offering websites (ICOs) to its Great Firewall.

Chinese government shall have complete control over the information published on any blockchain in China; that users cannot be anonymous; and that blockchain providers need to start showing their users formal terms and conditions and service agreements that highlight the responsibilities of each party.

Here are some rules roughly translated from the Chinese version:

  1. All blockchain providers within China are required to operate according to these standards. The Internet Information Office of each relevant region will be responsible for enforcing the laws.
  2. Self-policing will be encouraged. It is preferred that everyone working on or with blockchain in China will be urged to get acquainted with and apply the new rules.
  3. Blockchain providers must be able to control the blockchain, including the ability to remove illegal content from the blockchain and control what kind of information is published on it.
  4. Blockchain providers will be required to collect personal identification information from blockchain users, based on their company, ID card number or mobile phone numbers. Blockchain providers cannot serve anonymous users.
  5. Blockchain providers will be required to codify the terms and conditions of their platform, and obligations of providers and users, under formal service agreements.
  6. Anytime a blockchain provider develops new products, features, functions or starts offering new services, it should report to the local Internet Information Office to subject it to a “safety assessment”.
  7. Blockchain providers and users should not use blockchains for illegal purposes (go figure), including those which “disrupt social order”. Prohibited content shall not be copied, published or disseminated on blockchains.
  8. Blockchain providers must be registered, must clearly show the details of its registration so people know it’s a legitimate service, and will be periodically inspected.

Does is mean a ban for Cryptocurrencies?
Bitcoin and Ethereum might be right out, then. And does this mean EOS can only be legal in China if at least two thirds of its block producers are located in China so they can tamper with the blockchain as requested?

Other cryptocurrencies might fare better and it could actually bode well for the centralised ones which might accrue users from the exodus elsewhere. For example, China-based VeChain and its highly-malleable reputation-based DPOS system might do alright.

But what this means for China’s cryptocurrency miners is another big question that might be tough to answer? Plus, there seems to be some broadness around the definition of a blockchain service provider. The regulations describe blockchain providers as “…the entities or nodes that provide the blockchain information service to the public” and “…the organisation that provides technical support for the blockchain information service”.

China calls for the blockchain industry to “strengthen self-discipline” and “improve the professional quality of the staff of the blockchain information service”

At the same time, it also calls for the blockchain industry to “strengthen self-discipline” and “improve the professional quality of the staff of the blockchain information service”, although that part still seems to be a general guideline and doesn’t have any penalties attached to it.

On the whole it sounds like there might be enough wiggle room for unpleasant things to happen to developers, node operators, wallet providers, blockchain users of any kind, and anyone else in China who can be identified as having touched an illegal blockchain in an illegal way.

However, Bobby C Lee, early Bitcoiner and founder of China´s first Cryptocurrency Exchange recently explained who Chinese traders still manage to circumvent Chinese crypto bans (see my blog article of Bobby C Lee presenting at a Conference in Seoul)

How will this affect cryptocurrencies?
“Heavily” seems like an obvious answer. And the markets wasted no time throwing themselves off a cliff.

It might be time to start dividing cryptocurrencies into two groups: the potentially legal and the soon to be illegal in China.

The strictest element of the new regulations, which will probably be the deal breaker for most, is that it’s only legal to provide or use a blockchain if the Chinese government is able to control the data on it, including removing it if needed. This means there has to be some kind of backdoor or way for a single entity to control transactions, remove blocks and so on.

Bitcoin and Ethereum might be right out, then. And does this mean EOS can only be legal in China if at least two thirds of its block producers are located in China so they can tamper with the blockchain as requested?

Other cryptocurrencies might fare better and it could actually bode well for the centralised ones which might accrue users from the exodus elsewhere. For example, China-based VeChain and its highly-malleable reputation-based DPOS system might do alright.

But what this means for China’s cryptocurrency miners is another big question that might be tough to answer.

Is it actually enforceable?
The regulations come into play on 15 February, so the world won’t have to wait too long to find out how this all plays out.

Wherever there is some kind of central authority behind a cryptocurrency, or where there’s a wallet provider serving residents of China or where there’s a mining manufacturer, they might have to start collecting user identities and showing terms and conditions if either they are based in China, or if the user is.

Of course, there’s still nothing preventing people from just keeping on anonymously using international wallets, public blockchains and similar, but it might still whittle down user numbers considerably.

And there may also be the possibility that it’s all just too difficult to effectively enforce so people kind of awkwardly ignore it, or that there’s a lack of clarity in the formal definition of “blockchain” being used in these regulations. Arguably blockchains are decentralised by definition, so any network which meets the requirements imposed by these regulations isn’t actually a blockchain.

Baidu’s XuperChain will become large part of its business
The new legislation supports the Chinese search engine Baidu, a main competitor of Google . Baidu has released its first ever blockchain white paper, and revealed big plans. The tech giant, which reports quarterly revenues of over $3bn, and is the world’s eighth-largest company, is seeking to capitalise on DLT to solve computer storage problems and take advantage of micropayments on its platform.

The ‘Baidu Blockchain White Paper V1.0’, was issued by the company’s internal Blockchain Lab on Wednesday and announces the development of its SuperChain – or, rather, XuperChain – network. It’s technicians claim that the system could handle more than 10,000 transactions per second.

XuperChain will be open source, say Baidu, allowing developers to use the tech to build or upgrade their own versions. The 48-page white paper also reveals that Baidu will include blockchain technology in large parts of its core businesses, including in solving intellectual property disputes, speeding up supply chain financing and even in online trading.

Chinese court accepted evidence stored on Blockchain
However, there are some very interesting good news! The Chinese short-video app Douyin has used the newly-established Beijing Internet Court to file a copyright infringement law suit against Baidu’s Huopai Video platform

The court announced in September 2018 that it would hear the case and will recognise evidence stored on blockchain, a first in the country’s video streaming industry.

The court announced that it would hear the case and will recognise evidence stored on blockchain, a first in the country’s video streaming industry.
Douyin is seeking compensation of around 1 million yuan (€ $120.000) from Huopai for unauthorised operation and downloads of a short video in May.

Spokeswomen from Douyin and Baidu did not immediately respond to requests for comment.

Douyin requested a third-party company, Beijing Zhongjing Tianping, to store evidence on blockchain relating to the content Huopai had allegedly published illegally, according to Chinese-language law magazine People’s Rule of Law.

China’s internet courts now accept and process internet-related legal cases online, according to a ruling by the Supreme People’s Court. Beijing internet Court, launched on Sunday, said it had already received 207 legal complaints as of 6pm Monday. Hangzhou internet Court, China’s first internet court, was launched last August.

China is not the first to accept blockchain records as legal evidence. The US state of Vermont passed a law two years ago that allows courts to use data on blockchain as evidence.

However, the acceptance of evidence stored on the blockchain may have little impact on non-internet-related civil or criminal lawsuits. Blockchain data being legal evidence is relatively new and courts’ acceptance of it will depend on individual courts and situations.

Source: Cointelegraph, CBC, South China Morning Post

Tweets: CryptoRobby_

Blog: CryptoRobby.blog

Will Ethereum survive? A critical review

This article is based on a tweets of Tuur Demeester where he strongly criticised Ethereum founders and in particular Vitalik Buterin. I added my own views and experience from programmers. Recently lots of coders complain about the malfunction of the once famous and meant-to-be-wonderful Ethereum blockchain.

Several influencers published critical views which I summarise below and which also express my personal views.

Ethereum is considered a crypto blue chip, which it is definitely NOT. Vitalik Buterin´s startup is – like himself – VERY young. It is full of bugs, transaction are way too expensive and it is definitely too slow for real world applications. Let me share some own findings and major ones of Tuur:


First, contrary to its marketing, ETH is at best a scientific experiment. It’s now valued at $15,6 B, which is very high compared to an intrinsic value and given the weaknesses and unpromising outlook.

Second, I had to deal with applications for smart grids and energy network. It was very clear that Ethereum is not suitable for energy applications: too expensive, too slow. For a single house the price for transactions would be US$ 300.000 Ethereum.

Third, Ethereum developer Vlad Zamfir even tweeted that it’s not money, not safe, and not scalable. And Vlad is one of the core developers of Ethereum. Interesting!

Fourth, there were often posed questions to Ethereum founders about how they were going to scale the network. Sharding was a topic by then and we’re now 4 years later, and sharding is still a dream.

Fifth, despite strong optimism that on-chain scaling of Ethereum was around the corner (just another engineering job), this promise hasn’t been delivered on to date.
Blog entry of November 2015 by Michael Ilg:

Sixth, Muneeb Ali cited a team of reputable developers decided to peer review a widely anticipated Casper and sharding white paper, concluding that it does not live up to its own claims.
The review claims that “the authors do NOT prove that the CBC Casper family of protocols is Byzantine fault tolerant in either practice or theory”.

Seventh, on the 2nd layer front, devs are now trying to scale Ethereum via scale via state channels (ETH’s version of Lightning), but it is unclear whether main-chain issued ERC20 type tokens will be portable to this environment.

Eighth, I consider the Bitcoin Lightning Network still a misconcept, which I criticised in previous articles. However, contrary to 2nd layer front of ETH Bitcoin managed to release the first public code in January 2016, Alpha in January 2017, Beta in March 2018. Which is far better than ETH ever managed. And Bitcoin’s Lightning Network is now live, and is growing rapidly, of course still full of bugs, but at least it´s running!

Ninth, in 2017, more Ethereum scaling buzz was created, this time it was called “Plasma”. Buterin & Poon published a new scaling proposal for Ethereum, “strongly complementary to base-layer PoS and sharding”: plasma.io

Peter Todd came to the conclusion that upon closer examination “…these ideas were all considered in the Treechain design process, and ultimately rejected as insecure.”

Tenth, the transition to proof-of-stake, an “environmentally friendly” way to secure the chain. If this was the plan all along, why create a proof-of-work chain first asks Tuur Demeester.

The consensus mechanism Proof of Stake (PoS) is not a new concept at all. Proof-of-Work actually was one of the big innovations that made Bitcoin possible, after PoS was deemed impractical because of censorship vulnerability.

Proof-of-Stake based private currency designs date at least back to 1998 and has been part of the CypherPunk movements early concepts. See Medium article

Eleventh, over the years, it became a pattern in Ethereum’s culture to recycle old ideas while not properly referring to past research and having poor peer review standards. This is not how science progresses!

Vitalik Buterin has been repeatedly criticised for not crediting prior state-of-the-art. Once again with plasma: see the tweet

One of the concerns of Tuur Demeester –an important critical voice when it comes to Ethereum – is that “…sophistry and marketing hype is a serious part of Ethereum’s success so far, and that overly inflated expectations have lead to an inflated market cap.”. That´s a thing!

Twelfth, A few more inconvenient truths: In order to “guarantee” the transition to PoS’ utopia of perpetual income (staking coins earns interest), a “difficulty bomb” was embedded in the protocol, which supposedly would force miners to accept the transition.

Of course, nothing came of this, because anything in the ETH protocol can be hard-forked away. Another broken promise.

Looks like an Ethereum hard-fork is going to remove the “Ice Age” which is the difficulty increase meant to incentivise transition to PoS.

Another idea that was marketed heavily early on, was that with ETH you could program smart contract as easily as javascript applications.

After Tuur tweeted even true ETH-evangelists on Twitter started criticising Ethereum founders and said things like:
“It is a rant. Still informative. Covers key points and provides great articles. Hard to find criticism of Ethereum written by its own community. That’s were competitors come in handy. Bitcoin is for many a religion. So is Ethereum. All extremists are as unpalatable as it gets.”

Tuur´s criticism is similar to what I have seen over the last year: broken promises, postponed implementations, lots of visions and dreams, and a blockchain full of bugs, slow, expensive transaction. With blockchains of the third generation like EOS, 0BSnetwork,Stellar, Cardano, IOTA the blockchain 2.0 Ethereum has to work hard to fulfil its promises.

Source: Tweet of Tuur Demester

CryptoNews.de Interview with CryptoRobby: Bitcoin Lightning Network is crap!

 

Bildschirmfoto 2018-11-10 um 13.29.29.png

This article is machine translated, Original Interview with Georg Steiner, CryptoNews.de – original in German language

 

Thank you  for your time Robby Schwertner aka CryptoRobbyThe crash of the cryptocurrencies at the end of 2017 has shocked many crypto fans first. Was that a cleansing storm or the hard landing on the ground of reality?

The price increase in autumn and winter 2017 was dramatic, it went vertically upwards. Therefore, it was clear to experienced traders that this would not end well. And so it came in January and February 2018 to the big crash. Many weak blockchain projects and scams have been swept away by the market. Suddenly Bitcoin and cryptocurrency were not so cool anymore, crypto trading was not that easy anymore.

I think it was very beneficial that it came to a market adjustment, it sifted chaff from the wheat. People working on long-term projects now have a chance to program their blockchains and develop their decentralised applications with much less hustle and bustle.

Currently, I see the market in a sideways movement, which will certainly last for another 2-3 years. Well-known, but not undisputed, influencer Julian Hosp saw the bitcoin price of $ 50,000 in July. He had to retract his forecast recently. Such announcements are simply dubious.

Already in March, I warned that 2-3 difficult years for cryptocurrencies are imminent. There is a pattern in the Bitcoin price that occurred in 2011 and 2013: a sharp rise followed by a crash and a longer phase of sideways movement. Of course the conditions are similar.

But in the near future, I see no highs for Bitcoin but the hard slog. The weakness of the Bitcoin Lightning network is evident. In my opinion, this is a total faulty design. This will certainly make Bitcoin not attractive. Why? The system of channels requires funds to be put in the system, only small amounts of up to 50,- US-Dollar can be transferred and it still has many bugs.

Is the blockchain’s technology actually “The Next Big Thing” or is it threatening to sink after a blaze?

Yes, Blockchain has the potential to disrupt entire sectors. The explosive force is that instead of sending information over the Internet, you can now transfer values. The internet is great, but it is weak when you transfer value, like money or stocks, or km performance. Then one still needs a so-called “unity of trust”.

When I transfer online, there is still a bank in the background, which guarantees that the transactions will be carried out. For Bitcoin and many other crypto-currency, banks are not needed. I will send the amount and it will be sent directly over the internet. I have no access afterwards and the counterpart can manage the funds.

By the way, Nobel laureate Milton Friedman predicted 20 years ago that there would be an internet-based currency. Because there is no reason why only a nation-backed currency may be used. When people gain confidence in other forms of currencies, there could be a breakthrough. For example, a blockchain-based cryptocurrency may then become a world-wide reserve currency that is not controlled by a single nation.

My dream is a United Nation Currency, not controlled by a single nation

I think this vision is just wonderful. The financial sector is ne of several areas being overhauled by Blockchain. There are also promising approaches in the energy sector, for transport, for the travel industry, for the management of personal data. Cryptocurrencies may be a hype in the short term that has now hit the ground of reality, the bubble of Blockchain will certainly not burst.

What is your mission as CryptoRobby, as an ICO Advisor, Social Media Influencer and Keynote Speaker?

My personal mission as CryptoRobby is to find and support blockchain-based applications that add value to people, benefit to society. For this I have created your own hashtag: #ReturnonSociety. It is derived from return on investment.

Investors always have the profit and want to make as much profit as possible with their capital, a return on the investment. I created the persona CryptoRobby to support projects with growth potential, which I consider very important. We have to reach people in daily life. And it should offer added value. We want to develop blockchain-based services that make our lives simpler and cheaper, which will make the economy easier for us with cash, various credit and debit cards, and so on. Where apps are developed that provide true mobility solutions.

How do you assess the further developments in the regulation of cryptocurrencies and ICOs? What would make sense and what hinders further development?

Regulation is necessary. The first step is first a definition of terms. Cryptocurrencies are currently differentiated into coins or tokens. Coins tend to emphasize the money character, while tokens are more likely to be vouchers. However, there is no clarification in any case law worldwide. It is also nowhere defined in a law.

In order to achieve legal certainty for start-ups and thus promote innovation, regulation is important. However, even countries with strict regulations, such as the US, China and Germany, are seeing many start-ups migrating and being forced to leave the country.

Countries such as Malta, Liechtenstein and Singapore offer a broader legal framework here. I participated last week in a large blockchain conference in Malta with over 8,500 participants. This is remarkable for this small island state.

The Prime Minister of Malta gave the opening speech and promised his full support to the blockchain start-ups. Here, Malta uses its opportunity very skilfully, while countries like Germany, Italy, Poland and Austria have already missed the train. Liechtenstein is also positioning itself very clearly, as from the end of November 2018 a specific blockchain law comes into force. The small state of Liechtenstein already accommodates four times as many Blockchain companies as the neighbouring state of Austria.

What could bring the final big breakthrough of cryptocurrencies? Does it have to be a financial crash first, or is it enough for institutional investors to make big investments?

It will be a mixture of both. Well-known economists predict a substantial global economic crisis over the next 18-24 months, with countries such as the US or Brazil adding to their fears. At any rate, it can be seen that countries in crisis tried to use cryptocurrencies as a lifeboat as an alternative to the worthless state currency.

Venezuela put the PetroCoin on the way, the project failed, incidentally, because it was very poorly managed. In crisis-stricken Greece, people fled to Bitcoin early on because their own currency depreciated sharply. Russia considered circumventing sanctions with cryptocurrencies. Could be good that a financial crash uses cryptocurrencies.

The entry of institutional investors is imminent. They wait until the fog clears and you have a clearer view of the crypto currency landscape. I myself offer analyses for crypto currencies with a partner. We offer these analyses to banks and financial institutions and the interest is very high. Banks do not want to act yet. But they are ready to train their employees because they receive hundreds of requests every day and are not yet allowed to enter cryptocurrency trading because of their own strict guidelines. That will change very soon.

 

Here and there, states and start-ups experiment with digital Fiat currencies. At the end of the day, could cryptocurrencies cause cash to disappear and national banks use technology to fully digitise Fiat currencies?

Cash will disappear even without cryptocurrency. It is only a matter of a few generations. Then one wonders why one has used so impractical metal coins and paper notes. Just as we are surprised by early currencies such as shells, gems and gold lumps.

Cryptocurrencies could cause classic cash to disappear even faster. I was in Hungary, Switzerland and Austria last week. I needed three different currencies. And these countries are not big states, they are not even as big as Shanghai or Tokyo together.

My dream is that we get a new reserve currency that is not tied to a state. If national banks put on their own cryptocurrencies, I find that not spectacular. There are also research reports that for large countries, creating a separate cryptocurrency is not an advantage, for smaller currencies saw benefits due to the cost savings.

The well-known German stock market expert Dirk Müller is convinced in his new book “Machtbeben” that Bitcoin was an invention of the NSA in order to test the technology anonymously. What do you think of such theories?

I know the book by Mr. Dirk Müller. He claims something he can not prove. Such statements are a symptom of our time, it shows how sick the system is. Through social media, Mr. Müller serves an audience that like to hear such conspiracy theories, he serves this auditorium.

What makes me angry is the way people are taken for idiots. Skilled rhetoricians like Muller and Julian Hosp are the new preachers of wealth, they explain the world to us. And through their reach they collect funds. Mr Müller announced the day before yesterday that a fund in his sphere of influence has just exceeded the 100 million mark and that everything is going well. Clearly for him, things are going well. For the majority of traders with small income, things look quite different, they lost fortunes in this year!

Interview with Georg Steiner, CryptoNews.de – original in German language

Forbes partner ICO Civil failed to raise $8 Million

ICOFailOfTheWEEK:

Forbes partner ICO Civil failed to raise $8 Million! Just 10 days ago Matt Coolidge, founder of journalism platform The Civil Media Company announced a cooperation with Forbes media giant. The collaboration was a “milestone for the block chain-based journalism,” said Coolidge on Medium.

The joy, however, was only of short duration. The blockchain startup www.Civil.co failed to reach the $8 million soft cap and canceled the ICO. Seems to be the end of the days when promoters simply had to hint at collaborations with established companies to impress investors.

Civil CEO Matthew Iles said it was probably too complicated to buy tokens. However, there were more problems as it was not clear why blockchain would be used. ICO projects fail all the time, of course.

But Civil’s stumble is particularly notable because the platform recently grabbed headlines due to its partnership with the two mainstream media organisations. Obviously ICO investors becoming more selective in general. First signs that we are back to a kind of normal.

Source: www.BTC-Echo.de, CCN.com 

Austria´s Government uses Ethereum public blockchain to issue €1.15 billion government bonds

Bildschirmfoto 2018-10-03 um 11.19.34Austria’s government is set to use the Ethereum (ETH) public blockchain to issue €1.15 billion ($1.35 billion) of government bonds in an auction next week, local news outlet Kleine Zeitung reports.

Oesterreichische Kontrollbank (OeKB) — one of Austria’s biggest banks with $26 billion in assets in 2017 — will reportedly operate the live blockchain notarization service. During the auction, scheduled for October 2, the bank will issue the bonds on behalf of the Austrian Treasury (OeBFA).

Austria’s Finance Minister, Hartwig Löger, noted that the ministry considers blockchain tech “forms a focus on economic policy,” adding:

“Through setting up the FinTech Advisory Council at the Ministry of Finance, we are developing strategies enabling Austria to benefit optimally from these developments.”

OeKB says this will be the the first time a blockchain-based notarization service will be used as part of a Federal Bond Auction in Austria. The procedure, which has reportedly been successfully tested, will draw on a system that has been developed internally by the bank to “notarize data from Austria’s established system — the Austrian Direct Auction System (ADAS) — “as hash values on the Ethereum public blockchain.”

As Kleine Zeitung notes, the use of blockchain in this instance does not go as far as issuing tokenized bonds that would function in parallel to existing paper or digital systems. However, as Markus Stix, managing director at the Austrian Treasury, told Kleine Zeitung, the use of the technology has key benefits for both security and cost reduction:

“This added security contributes to achieving a high level of confidence in the auction process for Austrian government bonds and strengthens Austria’s good standing in the market, which indirectly also has the capacity to contribute to favourable financing costs.”

Earlier this summer, Cointelegraph reported on a major joint initiative between the World Bank and the Commonwealth Bank of Australia (CBA) to issue a public bond exclusively through blockchain. The A$100 million ($73.16 million) deal entailed two-year bonds that were priced to yield a 2.251 percent return.

This spring, Sberbank CIB — the corporate and investment banking arm of Russia’s largest bank Sberbank — conducted the first reported blockchain-based commercial bond transaction in Russia.

 

Source: KleineZeitung.at, CoinMarketCap.com

Call for Proposals: Blockchain for Consumer Electronics Retailer

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Call for Proposals

A leading multinational Consumer Electronics Retailer plans to apply blockchain and a Coin or Token for their distribution and sales business.

If you are interested in a cooperation, have ideas to share please mailto: retailercoin@protonmail.com until 31st of August 2018.

Background

With hundreds of huge stores to sell TV, refrigerators, cameras, coffee machines, laptops and more the retailer is one of the largest worldwide.  McDonalds coins for BigMac, Starbucks thinks about using coins, SingaporeAirlines uses cryptobased Krispay, Walmart uses blockchain for supply chains. Still in retail not much has been done yet.

 

Objectives

=> Tell us how you think blockchain can be used in consumer electronic retail business (not: production)

=> Point out use cases for payments, vouchers in sales

=> Introduce ICOs/blockchain projects which could be of interest

=> Share crazy ideas and critical views

 

Benefit

Opportunity for a cooperation, or at least visibility for your person and idea!

If you are interested in a cooperation, have ideas to share please mailto: retailercoin@protonmail.com until 31st of August 2018.

 

This is to bring cryptos to the people.
This is why I support it.
This is #ReturnonSociety.

Cryptocurrencies and Bitcoin in China: BTC hero Bobby Lee explains how Chinese people still manage to trade

Bildschirmfoto 2018-08-10 um 23.35.54.pngWhen I participated last week at the Blockchain Open Forum in Seoul, South Korea, where China’s first crypto exchange BTCC CEO Bobby Lee told us that people in China are still trading cryptocurrencies even after the Chinese government imposed a strict ban on crypto trading in September 2017.

Regulatory State of Crypto in China is still unclear

 

It is still very obscure how the blockchain and cryptocurrency sector is treated in China. The country’s government banned cryptocurrency trading in autumn last year to avoid outflow of the Chinese Renminbi to other major countries. However the government supports local blockchain projects and public blockchain protocols like Ethereum ever since.

In April 2018, the government of Hangzhou, one of the more active regions for technology development and innovation, backed a $1.6 billion blockchain fund to finance emerging startups working on commercializing and implementing sophisticated blockchain-related solutions.

Two months after the investment of the Hangzhou government in a 1,3 billion dollar blockchain fund, China Central Television (CCTV), a state television network controlled by the government, reported that the blockchain has the potential to become 10 times the value of the Internet with wording that demonstrated absolute certainty from the Chinese government about the long-term success of the blockchain.

CCTV reported:

“Blockchain is the second era of the Internet. The value of blockchain is 10 times that of the Internet. Blockchain is the machine that produces trust”.

For speculators and investors outside of the Chinese cryptocurrency market, the government’s support towards blockchain projects and its antipathy for cryptocurrency trading may be difficult to evaluate.

It has been evident based on the initiatives led by the Chinese government that it is highly optimistic towards the blockchain. Bobby Lee, the CEO of BTCC, said at the Blockchain Open Forum that the ban on cryptocurrency trading imposed by the Chinese authorities can be attributed to the idea that the value of major digital assets is currently overvalued and an outright ban on trading would cause the price of cryptocurrencies to decline.

Lee made clear he believes the market will continue to operate freely in the global space, with minimal impact and interference from the Chinese government. Lee also revealed that many investors and traders within China are still initiating cryptocurrency trading, adding that the volume of cryptocurrencies in China continues to remain high after the ban.

In February 2018, Hong Kong-based mainstream publication South China Morning Post reported that the Chinese government ordered its banks to completely stop cryptocurrency trades by cutting out services to exchanges. The government requested foreign platforms to stop providing services to local users as well.

Demand is Still There

While the official China banned cryptocurrency trading, the demand for digital assets is increasing daily, partially fueled by the government’s optimism towards the cryptocurrency and blockchain sector.

Lee concluded that the rising interest towards digital assets as long-term investments signify the acknowledgment of cryptocurrencies as a new asset class that can co-exist with the current financial system.

Bobby Lee is the co-founder and CEO of the first and definitely one of China’s biggest bitcoin exchanges, BTCC. All cryptocurrency exchanges have been closed down by the Chinese government last year. Lee said he is lucky that he was able to travel and visit the conference in Seoul. He heard that some other founders of Chinese exchanges still apply for their passport.

He believes there are two reasons why Chinese trade so heavily and intensively although officially not possible:

  1. Chinese love of investing and
  2. the popularity of bitcoin mining in the country.

“Chinese people lack a lot of opportunities to invest,” Lee told Business Insider. “Bitcoin is a high-growing, volatile asset class. In some ways, it’s a very ripe opportunity for day trading to make money.”

Swings of 5% or more in a single day for bitcoin are not unusual, representing an opportunity for speculators to make a quick buck on the currency — or of course stomach a sizeable loss.

Bobby lee on twitter: @bobbyclee

Follow my twitter for more: @CryptoRobby

and cryptorobby.blog

Pictures: CryptoRobby 🦋