Bitfinex not affected by PBOC
Image: Bitfinex is not affected by the PBOC decision
About 12 hours ago a Medium article was published that says Bitfinex might need to close the shop after the PBOC decision to shut down ICOs.
Many crypto news sites published today that China has passed laws that will regulate Initial Coin Offerings (ICOs) and any financing or fund raising that is collected from investors through ICO type initiatives would be illegal. This is to come to effect, effective immediately at the time of the article published at 2017–09–04 15:00:00
“Third, strengthen the management of tokens financing trading platform“** As at the date of this announcement, any so-called tokens financing trading platform shall not engage in the exchange of legal currency and tokens, “virtual currency”, and may not be traded or sold as a central counterparty to sell tokens or “virtual currency” Not for the tokens or “virtual currency” to provide pricing, information intermediary services.
I believe this is very important news for users of Bitfinex as they have the most non-chinese users while the platform itself is hosted, licensed and operated in Hong Kong.
According to Bitfinex their setup is now incorporated in British Virgin Islands now so the PBOC decision doesn’t affect them:
Read more in discussion on Reddit here.
People are getting nervous because the FUD is strong. It really only concerns ICOs now.
BusinessInsider said yesterday “all cryptocurrency trading illegal”
…according to some guy from eToro trading platform. Here is the article.
It links to the original PBOC statement in Chinese which you won’t be able to reliably interpret with Google Translator anyway, so unless you are Chinese you need to take someone’s word for it when they are telling you what the statement actually says. CNLedger on Twitter is probably the most trusted source at the moment, and the tweets from yesterday are very clear:
5/ To clarify, in the notice PBoC used two different notions: Crypto-Currency (BTC, ETH) and Tokens. ICO ban =/= Crypto-Currency ban.— cnLedger (@cnLedger) 4 September 2017
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About the author
Written by KarlVonBahnhof
KarlVonBahnhof also on Reddit, Chris belongs to the crypto trader class of 2013. Located in the Americas most of the time, you're most likely to meet at r/BitcoinMarkets though.
Opinions are author's own.