Following the most recent decisions by the central government of China on the prohibition of the Initial Coverage Bids (ICO) and the closure order of exchange houses based in their territory, the bitcoiner community and some media have suggested the the possibility that the authorities take new decisions affecting other areas associated with the crypto-activists during 2017, beyond the exchange and this scheme of capitalization, but even mining, through a total ban of Bitcoin and the criptomonedas.
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But, what would happen in a scenario of total prohibition of cryptoactive by China? The question is not baladí, because in social networks like Reddit or Twitter the debate has taken on its relevance, and although there has been no official confirmation, the users and great figures of the ecosystem begin to value the total suspension in China as a tangible possibility.
Recall that in late August, just before the Chinese government decided to ban the ICO there was a wave of rumors regarding stronger restrictions , which ended up being fulfilled, something that has been emphasized by some of the people who talk about the ban . Then, local media specialized in finance, stated that the authorities did not rule out any scenario, including the possibility that prohi b Ieran the ICO, what ended up happening. wave of rumors regarding stronger restrictions
WELL-MEDIATED ‘RUMOR’ AND DANGEROUS THREAT TO MINING
In the media the management of information remains tight, no one confirms anything and speaks of sources “familiar with the subject” , “people inside” , despite the fact that the possibility suggested in an article published by the Wall Street Journal .
There, its author Chao Deng – who was sent a query about its sources without a response before the publication of this article – said that according to “sources close to the authorities”, China would be planning to take stricter measures around to the circulation of crypto-activists, exchange houses and even mining . According to the newspaper, the Chinese could adopt a complete ban on channels for the purchase or sale of crypto-activists in China, including international and global exchange activities – a decision that would go beyond the government’s goal of better control the financial activities that occur in its territory.
A ome measures in this regard could be, according to that article, b loquear access to the exchange houses operating abroad such as Coinbase, Bitfinex or Localbitcoins from central internet access in the country , including access to web version, to the App and its interfaces API. This coincided with the recent dissemination of “working papers” – not yet confirmed – specifying some of these measures.
Regarding mining, the Chinese government could block access to Bitcoin nodes in the primary output router and finally, through the recognition DPI, could Dismiss ar synchronization data of the blockchain Bitcoin in the main firewall. The Australian newspaper Australia’s Financial Review (AFR) reported that sources close to Huobi claimed that its founder, Li Lin, was obliged to “inform the authorities and cooperate with their work at any time”, in a measure that includes prohibition of senior executives associated with this important activity of the ecosystem. The information was also confirmed by Beijing News , which also said that other executives had also been required to “collaborate” with the investigation.
Beyond the bizarre handling of sources and the reference to veiled actors, one might ask what might be the interests of the media and, especially, the WSJ journal with respect to the diffusion of such sensitive and unconfirmed information, line of attacks against the main cryptoactive ecosystem, as happened with the statements of JP Morgan CEO Jamie Dimon , which can lead to negative changes in the price of cryptones.
GOVERNMENT MEASURES COULD HURT CHINESE BITCOINERS
Beyond the impact it could have on the ecosystem and the behavior of the global market, l a decision on of the Chinese government regarding the closure of the activities associated with criptoactivos could have a negative influence for their own interests , since China would be isolating itself from an important financial ecosystem, turning its back on the exponential growth that has had the market capitalization of both Bitcoin and other criptomonedas.
Chinese users who currently enjoy an important position in the market and a specific weight in the incidence of their commercial activities in the behavior of cryptoactive, would see their influence decrease significantly. Again China, as in the sixteenth century with the application of the Haijin , would turn its back on a great economic milestone.
This was an opinion shared Charlie Lee, team litecoin and recognized entrepreneurial ecosystem , who via Twitter said that could be good news banning the Asian giant ” China can no longer play with the markets by prohibiting Bitcoin . [The] cryptocurrency s can not be assassinated as by any country “, published through his account on the social network Twitter.
The discussion has come to Reddit , where users have weighed what would happen in a scenario of complete closure of cryptoactive activities on Chinese soil, ensuring that one of the main characteristics of Bitcoin and cryptononedas in general is its resilience, which added to the decentralization they have been building, means that they will maintain current success and growth, despite China’s regulatory and control decisions.
Although it has been interpreted as the “war” , because it is the first time that a government has taken things so far, some have understood that it is a call for attention to the community, to unite efforts around the network and its current characteristics, where the total output of miners in China will have a significant but not fatal impact on the currency.