{"id":23617,"date":"2018-01-08T07:22:06","date_gmt":"2018-01-08T15:22:06","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=23617"},"modified":"2018-09-09T19:10:36","modified_gmt":"2018-09-10T02:10:36","slug":"crypto-behind-great-wall","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/crypto-behind-great-wall\/","title":{"rendered":"Crypto Behind The Great Wall"},"content":{"rendered":"<p>The mystique, rich culture and breathtaking beauty of China has captivated mankind for centuries. Historians have spent many a lifetime, painstakingly piecing together the timeline of the world\u2019s largest nation, which dates back to 1500 BC.<\/p>\n<p>And, especially in more recent years \u2014 after an era of political \u201cenlightenment\u201d and globalization \u2014 a visit to the Country\u2019s shores is now on the must-do, bucket list of countless keen travelers.<\/p>\n<p>Although scholars seem to be in agreement that feudalism and colonialism played formative roles in China\u2019s journey, the jury is still out on whether it follows socialism with Chinese characteristics; or, indeed, capitalism with Chinese characteristics. You decide; though, regardless, the fact remains that, since earliest times, the Nation exchanged value amongst themselves in various ways.<\/p>\n<h2>History of Chinese Money<\/h2>\n<figure id=\"attachment_23633\" aria-describedby=\"caption-attachment-23633\" style=\"width: 300px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23633\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/china-ancient-currency.jpg\" alt=\"\" width=\"300\" height=\"149\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/china-ancient-currency.jpg 600w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/china-ancient-currency-300x149.jpg 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-23633\" class=\"wp-caption-text\">Paper money followed during the 9th century, but copper coins remained the chief denomination of currency in China; until, the introduction of the Yuan in the late 19th century.<\/figcaption><\/figure>\n<p>The history of Chinese currency spans more than 3000 years. In the beginning, cowry shells \u2014 which are sea snails, also referred to as mollusks \u2014 were used as an agreed token and storage of value within communities. But, around 210 BC, the first emperor of China, Qin Shi Huang, abolished all other forms of local currency and introduced a uniform copper coin.<\/p>\n<p>Currently, the renminbi is the Country\u2019s official currency on the mainland, but not in Hong Kong or Macau, the gambling mecca and <a href=\"https:\/\/cryptoslate.com\/ico-mega-raise-500-million-floating-cryptocurrency-casino-macau\/\">China's equivalent of Las Vegas<\/a>. Because they are special administrative regions, the Hong Kong dollar and the Macanese pataca are in use.<\/p>\n<figure id=\"attachment_17374\" aria-describedby=\"caption-attachment-17374\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-17374\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/dragon-pearl-hotel-cover-1024x365.jpg\" alt=\"Dragon Pearl China\" width=\"1024\" height=\"365\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/dragon-pearl-hotel-cover-1024x365.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/dragon-pearl-hotel-cover-1536x548.jpg 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/dragon-pearl-hotel-cover-300x107.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/dragon-pearl-hotel-cover-768x274.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2017\/11\/dragon-pearl-hotel-cover.jpg 1648w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-17374\" class=\"wp-caption-text\">A forthcoming ICO from Dragon Corp is testing the limits of risk-taking. The company, led by Chris Ahmad, is planning to launch <a href=\"https:\/\/cryptoslate.com\/ico-mega-raise-500-million-floating-cryptocurrency-casino-macau\/\">a $500 million ICO to fund a floating cryptocurrency casino<\/a> that\u2019s the size of Las Vegas\u2019s iconic MGM Grand. A floating crypto casino is a pretty big boat, but their plan is not as preposterous as it might sound.<\/figcaption><\/figure>\n<p>And, to add further spice to the already hearty mix of variety, there are, in current times, often very loud cryptocurrency noises \u2014 both, drums of victory and deafening crashes \u2014 coming from behind The Great Wall. Further, in true fashion, also heaps of mixed signals, mystique, mystery, unverified information, disinformation and outright rumor.<\/p>\n<p>Quite frankly, nobody quite knows what to take with a pinch of salt, and what not. Doing our best to navigate through the fog ourselves, let\u2019s take a moment to try and figure the journey of crypto in China so far.<\/p>\n<h2>China's Approach To Crypto<\/h2>\n<p>During 2014 already, the Chinese Government quietly assembled their own research team on cryptocurrency. This fact was only acknowledged two years later when, after an <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2016-01-21\/chinese-central-bank-studies-prospect-of-own-digital-currency\">official announcement<\/a>, started reporting on the matter, during early 2016. Also, that the research findings were positive; digital currency reduces cost, the People's Bank of China (PBOC) said.<\/p>\n<figure id=\"attachment_23624\" aria-describedby=\"caption-attachment-23624\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23624\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/peoples-bank-of-china.jpg\" alt=\"People's Bank of China\" width=\"300\" height=\"200\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/peoples-bank-of-china.jpg 600w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/peoples-bank-of-china-300x200.jpg 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-23624\" class=\"wp-caption-text\">The People's Bank of China is the central bank of China with the power to carry out monetary policy and regulate financial institutions in mainland China.<\/figcaption><\/figure>\n<p>The PBOC continued by saying that they were reviewing the implementation of their own crypto, as soon as possible, as it improves the efficiencies surrounding global transactions.<\/p>\n<p>This was in stark contrast with the PBOC banning <a href=\"http:\/\/cryptoslate.com\/coins\/bitcoin\">Bitcoin<\/a> \u2013 the poster boy for solid cryptographic technology &#8211; outright in China, at the end of 2013.<\/p>\n<p>A move by the Chinese Government, which, after saying abruptly and perhaps opaquely that Bitcoin had \u201cno real meaning&#8221;, sent BTC into a tailspin that overnight almost halved its value globally. Please also read <a href=\"https:\/\/cryptoslate.com\/bitcoin-storer-value\/\">Bitcoin \u2013 Storer of Value<\/a>.<\/p>\n<p>After China\u2019s official announcement \u2014 above \u2014 most things crypto, behind The Great Wall for the remainder of 2016, seemed fairly subdued; on the surface, anyway. But, oh boy, come 2017, market spectators were in for a smorgasbord of fireworks!<\/p>\n<p>Early in the year, the Government\u2019s positive take on the revolutionary benefits of crypto, waxed lyrical in mainstream media again. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-02-23\/pboc-is-going-digital-as-mobile-payments-boom-transforms-economy\">Bloomberg<\/a> reported in February that the PBOC is going crypto, no doubt; in fact, they had already done trial runs of the prototype and \u2013guns ablaze- are ready to take on the world, even promising stiff competition to established payment platforms, such as the Alibaba affiliate, Alipay and WeChat.<\/p>\n<figure id=\"attachment_23627\" aria-describedby=\"caption-attachment-23627\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-23627\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/china-mobile-payments-1024x500.png\" alt=\"\" width=\"1024\" height=\"500\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/china-mobile-payments-1024x500.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/china-mobile-payments-1536x750.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/china-mobile-payments-300x146.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/china-mobile-payments-768x375.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/china-mobile-payments.png 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-23627\" class=\"wp-caption-text\">The Chinese have embraced online payments for almost everything. To buy a can of Coke, thirsty commuters scan QR codes on their smartphones rather than feed coins into a vending machine.<\/figcaption><\/figure>\n<p>At the same time, the PBOC called in the Country\u2019s cryptocurrency exchanges for a private little chat. The Government put forward their \u201cnoble\u201d concern as being that of money laundering. But, perhaps closer to home \u2013seen against the backdrop of centuries\u2019 worth of regime control- they simply cannot let go; as <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-02-23\/pboc-is-going-digital-as-mobile-payments-boom-transforms-economy\">Bloomberg<\/a> put it,<\/p>\n<blockquote><p>\u201cSince currencies have historically been issued by the state, not private players, it doesn\u2019t want to cede the cryptocurrency space to companies it has no control over.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_23628\" aria-describedby=\"caption-attachment-23628\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23628\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/bitmain-china.jpg\" alt=\"\" width=\"300\" height=\"137\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/bitmain-china.jpg 600w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/bitmain-china-300x137.jpg 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-23628\" class=\"wp-caption-text\">Founded in 2013, Bitmain Technologies, now among the world's most recognizable Bitcoin companies, was established to develop and sell the world\u2019s leading bitcoin miners using Bitmain's ASIC chip technology.<\/figcaption><\/figure>\n<p>And, interestingly, the year further highlighted that one the world\u2019s largest Bitcoin mining players are \u2013 yep, you guessed it- actually based in China!<\/p>\n<p><a href=\"https:\/\/www.bitmain.com\">Bitmain<\/a>, with their registered headquarters listed as Beijing, not only operates one of the \u2014 historically \u2014 largest bitcoin mining pools, named Antpool; they are also a leading producer and designer of ASIC computer chips, which are used for bitcoin mining.<\/p>\n<p>Another very interesting insight \u2014 garnered from studies and anecdotal reporting, Investopedia says \u2014 is that 71 percent of the world\u2019s bitcoin mining pools sit behind The Great Wall!<\/p>\n<h2>The Great Crackdown of 2017<\/h2>\n<figure id=\"attachment_23637\" aria-describedby=\"caption-attachment-23637\" style=\"width: 253px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23637\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/huobi-okcoin.jpg\" alt=\"\" width=\"253\" height=\"212\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/huobi-okcoin.jpg 506w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/huobi-okcoin-300x251.jpg 300w\" sizes=\"(max-width: 253px) 100vw, 253px\" \/><figcaption id=\"caption-attachment-23637\" class=\"wp-caption-text\">On Sept. 15, Chinese government officials informed two prominent exchanges, Huobi and OKCoin, that they would have to stop trading by October 31, 2017.<\/figcaption><\/figure>\n<p>The rest of year 2017, for crypto in China, played out like one, long scary rollercoaster ride through an adventure park\u2019s \u201ccaves of horror\u201d. In no uncertain terms, the Chinese Government crushed private crypto activity in the Country.<\/p>\n<p>During September, all <a href=\"http:\/\/cryptoslate.com\/ico-database\">initial coin offerings (ICOs)<\/a> were outlawed by the regulators and monies \u2014 over $1.1 billion had been raised in more than 65 ICOs \u2014 ordered to be paid back to investors.<\/p>\n<p>Demonstrative of the gravity of the event, mainstream media even addressed the talk on the street \u2013(Chinese whispers?) that ICO operators may actually face the death penalty, if charged and found guilty of illegal fundraising.<\/p>\n<p>And, with the same spirit of discontent, cryptocurrency exchanges were also summarily closed down by the authorities in September.<\/p>\n<p>It is now illegal for Chinese mainlanders to exchange digital money unless they operate offshore. Forbes headlined during November, \u201c<a href=\"https:\/\/www.forbes.com\/sites\/kenrapoza\/2017\/11\/02\/cryptocurrency-exchanges-officially-dead-in-china\/#400328202a83\">Cryptocurrency Exchanges Officially Dead In China<\/a>\u201d, and, just to make sure that their clout is not underestimated, the Chinese Government, just last week, outlined a plan to curb \u201csome\u201d Bitcoin miner operations by effectively limiting, or controlling, their electricity supply.<\/p>\n<figure id=\"attachment_23632\" aria-describedby=\"caption-attachment-23632\" style=\"width: 200px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23632\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/bobby-lee-bitcoin.jpg\" alt=\"Bobby Lee Bitcoin\" width=\"200\" height=\"150\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/bobby-lee-bitcoin.jpg 600w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/bobby-lee-bitcoin-300x225.jpg 300w\" sizes=\"(max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-23632\" class=\"wp-caption-text\">Bobby Lee is the CEO and co-founder of BTCC.<\/figcaption><\/figure>\n<p>Okay, so the fate of private crypto is signed and sealed in China, we\u2019d be inclined to think, while taking our funeral clothes out of the mothballs. But, not so fast, there are still the die-hard believers out there.<\/p>\n<p>For example \u2014 last week, Bobby Lee, CEO and co-founder of <a href=\"https:\/\/www.btcc.com\">BTCC<\/a>, which closed down its China-facing trading operations in September 2017, told CNBC:<\/p>\n<blockquote><p>\u201cIn this world, nothing is ever permanent. One day I think it's possible they'll lift the ban, so called, and they might reinstitute it and license it. Frankly speaking, I don't know what kind of time frame that is, whether it's a few months, a few years or even a few decades, so it's hard to tell.&#8221;<\/p><\/blockquote>\n<p>Well, hats off to you, Bobby; we love the spirit! Although we might not necessarily share your optimism, we\u2019re certainly aboard, looking out for positive developments in the private crypto space of the world\u2019s second largest economy, however long it may take. In the meantime, please pass us that box of Chinese puzzles.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The mystique, rich culture and breathtaking beauty of China has captivated mankind for centuries. Historians have spent many a lifetime, painstakingly piecing together the timeline of the world\u2019s largest nation, which dates back to 1500 BC. And, especially in more recent years \u2014 after an era of political \u201cenlightenment\u201d and globalization \u2014 a visit to [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":23619,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,107,36],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crypto Behind The Great Wall<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/crypto-behind-great-wall\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crypto Behind The Great Wall\" \/>\n<meta property=\"og:description\" content=\"The mystique, rich culture and breathtaking beauty of China has captivated mankind for centuries. Historians have spent many a lifetime, painstakingly piecing together the timeline of the world\u2019s largest nation, which dates back to 1500 BC. And, especially in more recent years \u2014 after an era of political \u201cenlightenment\u201d and globalization \u2014 a visit to [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/crypto-behind-great-wall\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2018-01-08T15:22:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-09-10T02:10:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/01\/bitcoin-china-facebook-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Wim Olivier\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Crypto Behind The Great Wall\" \/>\n<meta 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Historians have spent many a lifetime, painstakingly piecing together the timeline of the world\u2019s largest nation, which dates back to 1500 BC. 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