Central bank weighs in! Interviews with banks and payment institutions Virtual currencies have been dealt a fatal blow

Overnight, cryptocurrencies such as Bitcoin have been hit by a series of blows!

Following the direct disconnection of mining machines by local governments, China's central bank has offered another big kill, directly interviewing some banks and payment institutions such as ICBC, CCB, ABC, Alipay, etc., and demanding that they should not provide products or services such as account opening, registration, trading, clearing, settlement, and other products or services for related activities.

After the release of the central bank announcement, bitcoin quickly dived, dropping nearly 10% during the day and dropping below $32,000 per coin; ethereum once fell more than 10%, dropping below $1,900 per coin; CoinAid and Ada Coin fell more than 5%, Dogcoin fell nearly 16%, and Ripple fell more than 8%. Compared to the high point of the year, bitcoin, ethereum and other virtual currencies are down more than 50%.

After being interviewed, major banks have issued statements to "draw a line in the sand" with virtual currencies. The statement said that the use of the company's services to carry out transactions in bitcoin and other virtual currencies is prohibited. Once found will immediately take measures to suspend the relevant account transactions, termination of financial services and other measures.

Alipay also responded that it is determined not to carry out or participate in any business activities related to virtual currencies. Once a merchant is found to be engaged in virtual currency transactions, it will be blacklisted and prohibited from subsequent cooperation.

The central bank struck hard

In the afternoon of June 21, the People's Bank of China (PBoC) issued a news release, saying that the relevant departments of the PBoC had recently interviewed some banks and payment institutions, including Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Construction Bank of China (CBoC), Postal Savings Bank of China (PSB), Industrial Bank of China (ICBC), and Alipay (China) Network Technology Ltd. on the issue of banks and payment institutions providing services for the speculation of virtual currency trading.

According to the official website of the People's Bank of China, in order to y implement the relevant decision-making and deployment of the CPC Central Committee and the State Council, implement the spirit of the fifty-first plenary meeting of the State Council Finance Committee, combat the speculation of bitcoin and other virtual currency transactions, protect the people's property safety, and safeguard financial security and stability, the recent People's Bank of China's relevant departments of the Bank of China on the issue of banks and payment institutions to provide services for the speculation of virtual currency transactions. The relevant departments of the People's Bank of China recently interviewed some banks and payment institutions such as Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank of China, Postal Savings Bank of China, Industrial Bank of China and Alipay (China) Network Technology Co.

The participating institutions said they will attach great importance to this work, and in accordance with the relevant requirements of the People's Bank of China, will not carry out or participate in business activities related to virtual currencies, further increase the investigation and disposal efforts, and take strict measures to resolutely cut off the funds and payment chain of virtual currency trading and speculation activities.

Bitcoin and other virtual currencies have plummeted

After the release of the central bank's announcement, the price of virtual currencies quickly jumped, bitcoin intraday fell nearly 10%, and fell below $32,000 per coin; ethereum once fell more than 10%, fell below $1,900 per coin; CoinAid, Ada Coin fell more than 5%, the Dogcoin fell nearly 16%, and Ripple Coin fell more than 8%.

Bitcoin Home data show that in the past 24 hours, the cryptocurrency market burst more than 170,000 people, the amount of more than 6.5 billion dollars.

Since its high of $64,800 per coin on April 14, bitcoin has continued to adjust for more than 2 months, with a cumulative drop of up to 50%; ethereum has dropped 54% since its high of $4,371 per coin on May 12th.

Tesla CEO Musk is known as the "king of the band" of bitcoin. His orders often lead to the price of bitcoin to surge and fall. In February, Tesla filed a document with the U.S. Securities and Exchange Commission showed that the company purchased $1.5 billion worth of bitcoin, at a cost of less than $35,000 per coin. During the period when bitcoin exceeded $60,000, Tesla's coin speculation was once more than 80% of the float, which amounted to more than $1.2 billion (about 7.9 billion yuan). Although Tesla recently sold about 10 percent of its bitcoin position, it's possible that Tesla's investment could be close to a loss as the price of bitcoin plummets.

Metro's chairman, Vincent Tsai, is also known to be a big fan of bitcoin, with his Hong Kong-listed company Metro having made three consecutive cryptocurrency purchases previously. As of April 8 this year, Meitu had made a cumulative net purchase of about $100 million worth of cryptocurrencies.

According to calculations, Mito spent a total of $49.5 million to buy 940.885 bitcoins, costing about $52,600 per coin; in addition, Mito spent a total of $50.5 million to buy 31,000 ethereum coins, costing about $1,629 per coin.

Calculated according to the latest price of Bitcoin of $32,100 per coin, Mito's investment in Bitcoin has a loss of $20,500 per coin, with a floating loss ratio of 38.97%, amounting to a floating loss of $19.29 million; according to the current price of Ether at $2008 per coin, Mito's floating profit ratio in Ether is 23.26%, with a floating profit amount of $11.75 million. On a consolidated basis, Meitu's float in cryptocurrencies is $7.54 million (about RMB 48.77 million). And before Bitcoin's current crash, Meitu's float on cryptocurrencies was once as high as RMB 186 million.

Major financial institutions have been with the virtual currency "delimitation"

After being interviewed by the central bank, on the evening of June 21, Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank of China, China Postal Savings Bank and Industrial Bank of China have issued a statement saying that it is prohibited to use the company's services to carry out transactions in virtual currencies, such as Bitcoin. Once found will immediately take measures to suspend the relevant account transactions, terminate financial services and other measures.

ICBC, Agricultural Bank of China, Construction Bank of China, Postal Reserve Bank and Industrial Bank of China all said:

It is resolute not to carry out or participate in any business activities related to virtual currencies, and resolute not to provide any financial products and services such as account opening, registration, trading, clearing and settlement for virtual currencies.

Any institution or individual shall not use the account opened with the Bank for the recharge of transaction funds of virtual currencies as well as activities such as withdrawing funds, purchasing or selling recharge codes for related transactions, and shall not transfer funds related to virtual currency transactions through the account opened with the Bank.

We will continue to strengthen the daily monitoring and investigation of transactions involving virtual currencies, and will immediately take measures such as suspending the relevant account transactions and terminating the financial services for the abovementioned behaviors involving virtual currencies once they are discovered. The company will also immediately report to the relevant authorities on any clues of violations found.

Alipay: Merchants engaged in virtual currency transactions will be retired

After being interviewed by the central bank, Alipay also issued a statement saying that it is determined not to carry out, not to participate in any business activities related to virtual currencies, and that if it finds any virtual currency transactions, Alipay will immediately stop the relevant payment services. Once merchants are found to be engaged in virtual currency transactions, they will be blacklisted and prohibited from subsequent cooperation.

Following up, the crackdown on related transactions will be further intensified in four areas:

1. Continue to closely monitor and investigate transactions involving virtual currencies, and set up an inspection system for key websites and accounts to block them as soon as they are detected;

2. Strengthen the monitoring of risks in the payment transaction chain, and strictly prohibit virtual currency The risk algorithm model is deployed to strengthen the monitoring of abnormal transactions, and risk reminders are given to the suspected payer, and the payee is restricted in its rights;

3. Merchant management is strengthened, and the entry of virtual currency merchants is strictly prohibited. Risk tips, through risk pop-ups, message push and other ways to strengthen user publicity and warning education.

Collective power outage! The world's largest gathering of miners struck out

Not only did they unplug the network cable, but they also cut off the electricity directly! The determination of local governments to crack down on bitcoin mining is undeniable.

Since the State Council's Financial Committee has called for a crackdown on bitcoin mining and trading, the country is taking urgent action to "encircle" mining behavior.

Recently, following the Inner Mongolia, Xinjiang, Qinghai, Yunnan and other places issued a ban on mining, the world's largest gathering of bitcoin miners in Sichuan, also played a heavy fist - on the collective power cuts in the mine!

Sichuan is the largest gathering of bitcoin miners in China and even in the world, and previously about 8 million loads were being used for cryptocurrency mining. Prior to the outage, it was thought that a cleaner model of hydroelectric power generation would "spare" Sichuan, which is predominantly a clean energy source of hydropower and was considered to be the last bastion of bitcoin mining in China. Obviously, this underestimates the determination of the local government to combat bitcoin mining.

On June 18, the Sichuan Provincial Development and Reform Commission and the Bureau of Energy jointly issued a notice on cleaning up and shutting down virtual currency "mining" projects. The notice requires the completion of the key object screening shutdown, the State Grid Power Company of Sichuan Province has been investigated and reported on the 26 virtual currency "mining" project, in June 20 before the completion of the screening clean-up shutdown work.

At the same time, the notice requires power generation enterprises to carry out self-correction and self-checking, and requires a comprehensive cleanup and investigation, on June 25 before the self-checking cleanup and rectification and cleanup and shutdown of the situation reported respectively. In addition, the municipal (state) governments were also asked to carry out a dragnet inspection and immediately shut down the mining projects found.

On the evening of June 19, a small video spread in the circle of friends, which showed miners were cutting off the power supply of bitcoin mining machines, and rows and rows of throbbing green light went out one by one. There were a lot of people on the scene saying: Bye, See you.

Some industry insiders said that with the Sichuan mining was retired, the blockchain history for the first time ushered in the saddest moment of the miners, this time the historical significance of how far-reaching it is, the future will only know. From a certain point of view, this widespread official clearance of the mining industry is a blow to cryptocurrencies, which may lead to the end of an era.

As of 20:00 o'clock on the 21st, the topic #Sichuan Bitcoin Mining Collective Power Outage# has been read by nearly 100 million people on Sina Weibo. On Weibo, many netizens praised the power cuts, with one commenting, "In addition to wasting energy, it produces no positive productivity, and supports the shutdown." Other netizens said that all cut, the graphics card will be able to original price.

The regulation of virtual currencies continues to increase

In recent years, China's regulators have continued to strengthen the supervision and remediation of the field of virtual currencies.

In 2013, the People's Bank of China and other five departments jointly issued the Notice on Preventing the Risks of Bitcoin, which pointed out that, by nature, Bitcoin should be a specific kind of virtual commodity, does not have the same legal status as money, and cannot and should not be used as money in circulation in the market. The notice requires financial institutions and payment organizations not to carry out business related to bitcoin.

Seven departments, including the central bank, called a halt to all kinds of token issuance and financing in 2017 and carried out special remediation. Subsequently, China's virtual currency trading platforms and ICO trading platforms have basically realized a risk-free exit, and the global share of yuan-traded bitcoin once fell to less than 1%.

This year, the virtual currency trading speculation activities have rebounded, from May 18, China and the intensive release of cryptocurrency regulatory policy:

May 18, Inner Mongolia Development and Reform Commission set up a virtual currency "mining" enterprise report The same day, the China Internet Finance Association, China Banking Association, China Payment and Clearing Association issued an announcement on the prevention of the risk of speculation in virtual currency trading. The announcement pointed out that virtual currencies are not supported by real value, the price is very easy to be manipulated, and the related speculative trading activities are subject to multiple risks such as the risk of false assets, the risk of business failure, and the risk of investment speculation. Consumers should enhance risk awareness, set up a correct investment concept, do not participate in virtual currency trading speculation activities, to prevent damage to personal property and rights and interests.

On May 21, the State Council's Financial Committee asked to crack down on bitcoin mining and trading, and resolutely prevent the transfer of individual risks to the social sector. It is worth noting that this is the first time the Finance Committee proposed to combat bitcoin mining and trading behavior.

May 26, Inner Mongolia Development and Reform Commission issued a resolute crackdown on the punishment of virtual currency "mining" behavior of eight measures to solicit opinions. Industrial parks, data centers, self-powered power plants and other subjects for virtual currency "mining" enterprises to provide sites, power support, reduce the energy consumption budget indicators; the existence of intentional concealment of non-reporting, retiring and shutting down in a timely manner, approval and supervision of the ineffective, in accordance with relevant laws and regulations and party regulations seriously pursue responsibility.

June 5, a number of cryptocurrency circle V microblogging account was blocked, including trader warrior, fat house bitcoin, eight brother talk about coins, super bitcoin, blockchain William, etc., these accounts are mostly more than 100,000 fans. The relevant page shows that the accounts cannot be viewed due to complaints of violating laws and regulations and the relevant provisions of the Weibo Community Convention.

On June 9, the Qinghai Provincial Department of Industry and Information Technology issued the Notice on Comprehensively Shutting Down Virtual Currency "Mining" Projects, proposing to clean up and reorganize the mining of virtual currencies.

On June 9, the Development and Reform Commission of Xinjiang's Changji Prefecture issued a "Notice on the Immediate Suspension and Rectification of Enterprises Engaged in Virtual Currency Mining Behavior". The notice said that enterprises engaged in virtual "mining" must stop production and rectify the situation before 14:00 on June 9, and report the situation to the Development and Reform Commission of Changji Prefecture.

Also on June 9, the China Payment and Settlement Association issued a "tip on strengthening industry information **** enjoy effective prevention of payment risks", once again suggesting the risk of virtual currency. The above risk tips pointed out that the use of virtual currencies and other forms of implementation of illegal and criminal activities is gradually rising, because of its transaction with anonymity, convenience and global, and gradually become an important channel for cross-border money laundering. At the same time, there has been a pattern of using virtual currency as a medium for gambling runs. On the same day, in the microblogging and Baidu, enter "fire coin" "Coin" "Ou Yi" and other keywords, pop-up is "search results are not displayed "The first time I saw this, it was a very good idea for me to get a copy of this article.

On June 12, the Yunnan Provincial Energy Bureau office confirmed that, according to the "Yunnan Provincial Energy Bureau on further strengthening the management of bitcoin mining enterprise electricity notice" requirements, timely organization of the electricity sector to carry out joint inspections, at the end of June this year to complete the bitcoin mining enterprise electricity cleanup and reorganization, and seriously investigated and dealt with the bitcoin mining enterprise relying on the power generation enterprise, unauthorized private private connection of electricity, evasion of the national transmission and distribution fees, funds and funds, as well as the use of the bitcoin mining enterprise to generate electricity, and the use of electricity. The illegal behavior of the national transmission and distribution fees, funds and additional profit-making, once found, immediately suspend the power supply.

On June 18, the Sichuan Provincial Development and Reform Commission and the Energy Bureau jointly issued a notice on cleaning up and shutting down virtual currency "mining" projects. The notice requires the completion of the key object screening shutdown, the State Grid Power Company of Sichuan Province has been investigated and reported on the 26 virtual currency "mining" project, in June 20 before the completion of the screening cleanup shutdown work.