10000 yuan ATH may impact altcoin exchanges in Southern China
April 29Th to 1st May is the Labor’s Holiday in China. On 2nd May, Chinese bitcoiners witnessed another milestone in Bitcoin history as Bitcoin reaches 10,320 yuan on btc38, the only exchange that still processes btc withdrawal with 7-15 days of delay. But rumor has it that the exchanges in the southern China will be facing tightening regulation starting in May. Bter, bitkan, btc38, chbtc and Bichuang might be affected.
Yunbi released a CNY withdrwal delayed notice today during the the 3-day holiday:
“CNY withdrawal service is operated by third party payment channel. YUNBI needs to deposit cash reserves in advance.”
“YUNBI has already deposited 120% of the average reserves to the third party.”
“However, due to the deposit suspension to the payment channel during the holidays, there is very low probability that your withdrawal cannot be processed completely at the later period of the holidays. All the incomplete withdrawals would be confirmed in the morning of May 2rd.”
10,000 yuan is called “wan” or “万” in Chinese character. The 10,000 is a symbolic and an icon in Chinese culture. Back in the 1980s, ten-thousand-yuan household or “wanyuanhu” was an honorary term to describe a rich family as the income of a typical worker family was below 100 yuan.
WSJ China released a weibo today to report the ATH of bitcoin, citing price from Bitfinex and coindesk. The crossing of 10,000 is a number that already out-performs many peoples’ expectation and the reactions is mixed.
Screenshot of comments on WSJ report on BTC ATH
It’s only a money-laundry tool. When all of the USD that needs laundering flows to USA, the historical mission (of Bitcoin) will be completed.
Speculation of Bitcoin will cost lots of people heavily.
Most of the speculators are Chinese.
One comment may represent what a typical Chinese bitcoiners have in mind:
A group of people who know nothing about Bitcoin are trashtalking Bitcoin.
Despite the contradictory reactions in the market, insiders are more concerned on the ongoing regulations, which may extend to Bitcoin exchanges that are based in Southern China like Guangdong, Hunan and Sichuan as first disclosed by Jack Liao, founder of Lightening Asic:
China is traditionally divided into the South and the North due to its vast span in territory. While the Beijing-based exchanges like OKCoin and Huobi are under regulatory scrutiny and has suspended bitcoin withdrawal since February, the exchanges in Southern China seem unaffected like Shenzhen-based BTC38 or Sichuan-based Bichuang, an exchange that is funded by Huobi.Fengjiling, who previously has released the official documents of Rectification Guidelines for Chinese Bitcoin Exchanges (Full Text) ,claimed that bitcoin exchanges in Southern China would be facing tightening regulation after May.
His weibo was refuted as FUD but he insisted on the credibility of the undisclosed source:
The information I shared might be wrong. But my previous prediction has 80-90% accuracy since 2013. As such news may affect the price significantly, I am very cautious about the information I revealed on my weibo and I have confirmed this via various source. Those who accused me as FUD is intolerable.
The rise and rise of BTC may have side effects on altcoins, bringing more regulatory attention to the remaining exchanges in China.