Effective government regulation. Of Bitcoin. In China.

chinese government policy in action

Notice anything about the latest trading volume data coming out of China ? Notice how positively meek it is this week ? Given that only 1.1mn coins were traded across the three major Chinese exchanges – BTCChina, OKCoin, and Huobi – in the last seven days, some very simple arithmetic shows that 171.5mn were traded in the three weeks prior to that, about 22x the volume at present. This healthy contraction is all thanks to margin leverage for mainland traders of (you guessed it) 20:1 being regulated away – overnight! – by the PBOC on January 13th. Bitcoin, or at least its tenuous interface with fiat, was effectively regulated for once.

Mircea Popescu : This is a good idea ; and entirely tmsr-approved. It best serves the interests of all those involved ; the Chinese side showed a capacity of acting reasonably that places them in stark contrast to the Obamite US.

Of course there’s no data on how many coins are being traded privately at any given moment, but it should come as no surprise that your debt-free daddy is the one carrying the torch on the front lines. He’s the only one who can afford to at any kind of scale.

You had your chance.

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