China to block cryptocurrency platforms that allow centralized trading | Hacker News Reader

China to block cryptocurrency platforms that allow centralized trading

reuters.com

40 pointsrbanffy10 comments

The 0x protocol will come in handy in China soon.

How so? From what this (very brief) articles says, "Chinese authorities will also target individuals and companies that provide [...] settlement [...] services"

No matter what protocol and software is used, at some point, people will want to convert cryptocurrency to/from yuan. This cannot be done anonymously -- the options are face-to-face or via traditional banking system. In either case, it is pretty easy for authorities for find and arrest the relevant people.

I bet less than a hundred people arrested will be enough to scare everyone else so that all major exchanges will get closed.

Not unless people start to accept crypto as payment - it's not going to totally replace fiat quickly, but I have started taking payment from my clients in ETH, and also am selling digital goods and taking crypto as payment.

I am also paying others in crypto. Sure it's niche now, but the only barrier to adoption is a bit of technology advancement and belief in the value.

> platforms that allow centralized trading

How are these platforms different from a cryptocurrency exchange?

I believe the definition was purposefully left vague to allow authorities more discretion in shutting down the services designed to facilitate peer to peer transactions(e.g. sites resembling localbitcoins).

Blocking cryptocurrency exchanges is probably the point.

Smart and good move. The whole thing about being decentralized is that you don't need one body controlling the flow of a familiy's cash especially when they need water, food and toilets.

What exactly is the definition of de-centralized trading? Peer-to-peer transfers? With no market in place (since markets are centralized), isn't this like outlawing all exchanges?

Centralized trading does refer to website exchanges I believe.

But not all exchanges are centralized. For example [1]BISQ is one of many decentralized P2P exchanges.

[1] https://bisq.network/

So https://bitshares.org/ and other decentralized exchanges are still allowed? Wow.

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