Chinese Bitcoin Exchanges Will Likely Not Be Banned After All

Over the past week, inaccurate news regarding the supposed ban on Chinese bitcoin exchanges in mainstream media outlets in China and the US including Caixin, the WSJ and Bloomberg have shaken the bitcoin markets.

Almost immediately after the release of Caixin’s report, bitcoin’s price endured a minor correction, falling to around US$4,100. Despite showing signs of recovery, followup reports from the WSJ, Bloomberg and other Western news publications caused the bitcoin price to decrease to US$3,790.

While some analysts have speculated that the baseless criticism from JPMorgan Chase CEO Jamie Dimon led to the minor downturn, bitcoin experts including Blockstream CEO Adam Back stated that attributing the decline to Dimon’s statement is far-fetched, mainly because Dimon has continually criticized bitcoin since 2014. Back explained:

“I doubt Dimon had any impact. Reaction is just china. I’ve been buying the ‘china bans bitcoin’ dip every time, each time move is smaller.”

What Will Happen to Chinese Exchanges?

Today’s statement from China’s National Internet Finance Association (NIFA) translated by read that Chinese cryptocurrency exchanges have no legal authority to operate at the moment, and that exchanges have received many warnings in the past.

However, NIFA, the People’s Bank of China (PBoC) and local financial regulators will not ban bitcoin exchanges. In the near future, regulators intend to release a licensing program to provide Chinese exchanges with a properly regulated ecosystem in which to operate. Hence, in the upcoming weeks, Chinese exchanges will likely face stricter regulations and policies, but will not be banned or suspended.

From a regulatory standpoint, the Chinese bitcoin exchange ban rumors could positively affect Chinese exchanges moving forward, as the government will prepare a set of regulatory frameworks granting local trading platforms legal status and authority to operate within the country.

According to, many regional news publications have also stated that the ban will only apply to fraudulent projects and exchanges that are not on par with industry standards and regulations. Leading exchanges like Huobi, OKCOin and BTCC, the three largest bitcoin exchanges in China, will likely be eligible to file for a license if and when the Chinese government officially introduces its new set of regulations for the bitcoin and cryptocurrency exchange markets.

NIFA, PBoC, local financial regulators and regional news publications have clarified that bitcoin is not illegal and that the government is planning on providing a licensing program for bitcoin exchanges in the upcoming months. Several bitcoin exchanges that are not eligible for licensing due to poor Anti-Money Laundering (AML) and Know Your Customer (KYC) systems and a failure to comply with existing regulations could face temporary suspensions.

However, as of now, Chinese financial regulators are focusing on providing stricter regulation and licensing programs to exchanges, not imposing a nationwide ban on bitcoin exchanges.

  • Robin Marc Walser

    Obviously not, this is just some bullshit FUD. China is well-known for doing this over and over again. When do people learn…

    • Connor Ryan

      When else has this happened? I’m genuinely curious because if I know I’ll be less likely to stress out over crashes like this.

      • Trade Alrts

        China has banned Bitcoin MANY times. It is so not respected that people have been buying on the “China bans Bitcoin” for the past 2 years.
        Last July they closed down all the exchanges for 4 months and let everyone believe it was being banned. Before that for months there was rumors the exchanges would get shut down. Before that something else, before that something else….it has been ENDLESSLY like this from China.

        • vovannovig M

          So China will use what is impossible to close, they choose – Spectrecoin (XSPEC) Tor+OBFS4 . If you do not believe in freedom, you are a slave. Looks to the future, the future is Spectrecoin!

        • Douglas Crets

          China never even BANNED bitcoin in this recent regulatory sequence. The only people saying this are crypto traders who don’t freakin’ read any of the stories that the Chinese press publishes.

          • I live in China since 2011 now and it is some more complicated than that. The regulation took place in January already and all withdrawels from the mentioned platforms in BTC are stricly forbidden. hard regulations are put on trading bitcoin, respectively open a Chinese account.
            some of mine also stucks there, but localbitcoins is blooming!
            also there is any chance to far to take hand on the newly mined bitcoin in China.
            there are some more details of the harsh requirements the PboC put on the trading KYC policies! The want bank statements over a period of 6 month for every account ever used on the trading platform and personal contact etc etc.

          • Douglas Crets

            I also live in China, and I dn’t think what you are talking about is the same thing I am talking about. Also, again, the writer didn’t really fully research the issue.

          • you’re right. usually merkle’s articles are some better researched than this one,
            (second articy from this author I noticed that) but often the Chinese “Press releases” have some salami tactics. They give information from the government controlled slice by slice. If Chinese people realise that they panik.
            I am in SH. Where in China you live?

            I have 3-4 BTC stucking at okcoin, any idea how to get them out. I mean any other option but waiting and hoping they don’t declare bankrupt, the PoBC lowers the regulation (ha,ha) or get the RMB out?

      • tim graham

        they banned facebook and google until they could regulate them its the same thing it just means blockchain technology is valuable

      • Robin Marc Walser

        No one needs to freak out over this. It’s just simply China market manipulation at its best. Regardless, if you believe in cryptocurrencies, then simply hold on… January/February this happened already. Bitcoin dropped down to 900 before bouncing back and look at where we are now… general trend is still up. Until regulators definitely ban cryptos you don’t need to be worried about anything.

    • Edgelord

      They banning ICOs not Bitcoin exchanges.
      That’s more a problem for Ethereum not Bitcoin.
      Once again, Ethereum tarnishing Bitcoin’s name, like some date rapist cousin using Bitcoin’s name all over town.

    • Nik K

      They bet on noobs ! I posted similar opinion to yours, and noobs were asking for proof , since it’s happening first time to them.
      Noobs are plenty as crypto users increase each year ! And when noobs get a bad first experiance with crypto they are unlikely to come back again to crypto. Those systemic scam bags are doing an excellent job, as far as crushing the image of the cryptocurrency

    • Stone Skull

      i gotta learn how to time better. a lot of the selling is based on buying back in cheaper. i’m not good at it so just hold.. but sorta wish i sold with everyone else to buy back in now.

  • vovannovig M

    That’s why I use – Spectrecoin (XSPEC) is the premier privacy-focused cryptocurrency, featuring an energy-efficient proof-of-stake algorithm providing fast transaction confirmations, and a fully integrated Tor+OBFS4 layer for network privacy. Spectrecoin is actively developed, with an ambitious roadmap that prioritises privacy, security, and true decentralisation with innovative features such as low-power mobile wallet staking in our upcoming Android wallet.
    I’m not afraid of state laws because this project is not possible to ban! He works in China, Iraq and other countries …

    • BalrogZA

      Meh. DeepOnions if you want a true anonymous and private coin.

      • vovannovig M


        DeepOnion gives you free money, Spectre does not.
        Both operate on the Tor network.
        DeepOnion uses both Proof-of-Work and Proof-of-Stake, Spectre uses Proof-of-Stake only.
        DeepOnion does not offer transaction privacy, all transactions are
        publicly visible. In addition, Spectre also supports stealth addresses
        and ring signatures for private sending and receiving of coins.
        Users are able to send encrypted messages using DeepOnion, this
        does not quite work with Spectre yet, although we will be adding that
        DeepOnion is a marketing-airdrop scheme on Bitcointalk, whereas Spectre had a plain ICO.
        The DeepOnion dev holds more than 50% of the coins at this point,
        whereas the Spectre devs only hold about 1-2% together. Therefore,
        DeepOnion must be seen as being completely centralized at this point,
        which makes it zero value, whereas Spectre is completely decentralized.
        The DeepOnion dev is rich because he owns >50% of the coin
        supply of DeepOnion, whereas the Spectre devs are funded by the
        The Spectre project has a vision that goes beyond private
        transactions and targets to establish a private payment ecosystem
        similar to cash, whereas DeepOnion does not seem to have any further
        goals beyond having an anonymous currency.

        • BalrogZA

          Lol. Of course Dev still holds most DeepOnions, because there are still 32 weeks of airdrop left. Airdrop will have a wider distribution than any ICO. Thus DeepOnions has a better network effect, which will increase the value of the network magnitudes more than your Spectre. If you did any research, you will know that DeepOnions’ DeepSend feature will allow transactions not to show on the blockchain. The kicker? Do me a favour and look at the prices of DeepOnions vs Spectre on Novaexchange. Yes, now go cry in a corner 🙂

          • vovannovig M

            Are you that stupid? I’m
            telling you that your shit will not work in China, and you tell me that
            you can hide the transaction – so you can hide it in DASH and others.
            You understand first, and then clever, schoolchildren with an overestimated self-esteem are really breaking me!

          • BalrogZA

            Ah, calling someone stupid because your argument holds no water. Shame. Sorry, no person can understand that last sentence of yours. Seems maybe you should join those school children so you can write comments people can actually understand?

          • vovannovig M

            Have you tried Spectrecoin (XSPEC)?
            Did you make payments? Worked in China?

  • Haha fortune

    Thanks for the article Joseph, time to shut the FUD up and start trading 🙂 Do you have any sources for the articles, even chinese is ok, we can always use google translate.


  • Douglas Crets

    I don’t think the guy who wrote this fully grasps the steps that will lead to this. In fact, even NIFA has mentioned suspending the exchanges temporarily. And this end game isn’t over yet.

  • chi

    BTCC China exchange tweeted they will shut down in Sept due to the “verbal warning.” So, it seems this article is fake news?

  • Amadeu Alexandre

    My advice: buy while you can. We will still facing such kind of situation but definitely it’s not the end of bitcoin.

  • Douglas Crets

    You need to remove this article or write an editorial correction. COMPLETELY FALSE NEWS STORY.

  • Christian Kameir

    China also “bans: iPhones .. Yet, you will rarely meet a Chinese official without one! “Ban” has NOT the same meaning in China as it does in the US!

  • Lukasz

    Why do you post fake news? I live in China and BTC exchanges will be banned in October…

    • vovannovig M

      Tell me, please, do you know about the coin – Spectrecoin[XSPEC] TOR+OBFS4?
      The purse works fine in China, and you’ll like it!
      请告诉我,你知道硬币 – Spectrecoin[XSPEC] TOR+OBFS4 吗?