The currency woes in China: lack of prepaid phone channel blocking application scenario

the author: Pan Feihu

the domestic circle of COINS are facing new challenges.

the legendary “415” file did not fall to the ground as scheduled, let the currency the player for a sigh of relief. But whether trading platform or ordinary investor, have been aware of the currency in China is facing increasing difficulties.

at the end of march, the media revealed that the central bank internal issued “on further strengthening the currency risk prevention work notice, require commercial Banks to stop before April 15 for currency trading platform to provide services. The so-called “415 file” currency prices fell more than 10%, the currency community time jittery.

but by the end of April 15, all is calm, regulators did not according to speculation hit again. It makes a lot of people doubted, the so-called “415 documents stating otherwise are completely erroneous,” is banker deliberately let out false news.

the nation’s largest currency trading platform fire currency network is one of the doubters. As early as March 22, appeared on the Internet about “415” file, after reports of the site that has said it would “represent the damaged users to send lawyer letter and let the rumor mongers accept legal sanctions”.

apparently, fire currency network does not believe in the existence of “415” file. In other words, they failed to from their own information channels to get information on that.

however, less than a month, plot the reversal. On April 10, icbc call fire currency network, will no longer provide services for it. On April 11 and 17, China and China construction bank also issued similar ultimatums. Fire because money finally declared, “the bank policy uncertainty”, suspended bank prepaid phone, after the policy is to do adjustment.

the rest of the COINS platform also suffered a bank “blocked” in different extent. The currency of China issued a notice on 28 April, said at the request of action travel, closes the China merchants bank accounts prepaid phone service. Earlier, the two smaller trade website BtcTrade and FXBTC has stopped accepting bank prepaid phone.

odd is that Banks’ actions are in conformity with the rumors, but “415” file is still a mystery, even no one can prove whether it exists. Always adhere to the central bank, about COINS, all in 5, the central bank in December last year and five ministries issued the notice on preventing the risks of currency (hereinafter referred to as the “notice”) shall prevail.

on the other hand, the personage inside course of study tells sina science and technology, people to see the copy of “415” file, but the file only central bank internal circulation; Players also have the currency apply for information disclosure, it is central to the “involving state secrets” refuse to.

at the end of last year, regulators have made it clear cost for COINS may not pay through a third party; Now parted ways with Banks, mean a loss of another important currency trading platform top-up channel. How to make the yuan funds into the platform, network is fire currency and other trade website need solve most problems.

into jintong road

“we are most concerned about is golden.” Fire currency net co-founder du said.

the so-called “golden”, meaning here is how the user the renminbi deposits and a fire currency trading platform. Before this, the user can through the bank transfer, transfer money directly to the account designated by the fire currency network; Also can buy a top-up “point card”.

but this system was broken last month. Banks account manager called and told that fire currency network top-up account will be closed. “There is no formal notice or document, only a phone call.” Du said. In his view, the bank is very bossy and even suspected illegal; Fire COINS have tried to communicate, but not helped.

after the cooperative Banks have dropped out of the fire currency net only retained the point card prepaid phone channels. This let the fire with the network into the gold rate fell sharply, which affected the volume and activity on the platform.

du said, a series of efforts lead to fire with the network user activity fell 10%, at the same time the domestic main platform currency trading volumes shrink 30% month-on-month, prices fell 30% in a month.

fire currency network’s formulation of a plan is at present, pushing the currency the player online direct trading between the platform itself will only serve as a future dealmaking and call auction tool. Du are cited, players can build a QQ group, one currency or exchange code, one yuan, the two sides can clinch a deal on its own.

compared with the fire currency network in Beijing, is located in Shanghai’s the currency of China stress is much smaller. They shall, in accordance with the requirements, the closed to open accounts in China merchants, the rest of the bank account is still normal operation; In addition, users can also buy BTCC conversion code, curve top-up.

COINS, vice President of China LingKang previously revealed in an interview, has not yet been informed of Banks shut down. But in two days later, China merchants call, request to outlets pin. However, other Banks have yet to take similar action.

this may have something to do with the central bank a high specification “interview” at the end of April. By appointment, including commercial Banks associated with currency trading and third-party payment institutions, the number of not less than 20, including each big commercial bank, pay-and-escrow and other third-party payment, etc.

which named by special action travel and its later issued a statement, announced thoroughly with virtual currency such as COINS. , according to people familiar with the central bank wants to completely cut off the currency trading capital chain.

another result of the interview, pay treasure to the evening, as it made clear does not provide top-up for virtual currency such as COINS and withdrawal services, are not allowed through the pay treasure to buy or sell top-up code related transactions.

this let the currency the prospects of China BTCC prepaid phone code is full of doubt. Survey found that the currency of China’s list of 10 BTCC top-up code in the store, there are six on the taobao platform, docking and alipay. If pay treasure to carry out the latest announcement, then these online stores will face closure.

but so far, the shop is still in the business. Explanation is that the pay treasure, investigates them.

application scenario

for the domestic currency in terms of ecosystem, “golden” may be pain, there’s always a way to bypass the ban. But the lack of application scenarios, let the currency in the Chinese market faces everywhere for home.

according to the understanding of both du, COINS ecological chain can be divided into three sections: the upper is mine machine and mineral pools, and mineral pools and the world’s largest mining machine manufacturer in China; Net is middle trading platform, the current fire currency, COINS, China and OKCoin dimension and the percent of total global currency trading; Downstream is a variety of applications, China is almost a blank in this respect.

in his view, the United States are the currency of the outlet. “There, the currency can be used to purchase virtual items online, can serve as micropayments tools, even being used to purchase online pornography, drug, etc.” He said.

in fact, with the aid of mobile payment applications, the currency has been in large part to integrate into daily life of americans. For example, there is a Coin For Coffee mobile phone software, can let consumers use COINS to buy starbucks Coffee. And, of course, it still need to put the COINS into dollars, starbucks does not directly to the currency.

but in China, even if such transactions also belongs to the grey zone, is likely to hit a minefield. D agree, according to the central bank last year’s “notice”, merchants can’t COINS as commodity pricing; Players can change “currency”, privately but write on labels “for XXX currency”, is illegal.

this lead to the COINS as payment tool path is closed, can only play the role of investment tools. Part of the early believers so lost patience, even start bad-mouthing COINS.

macro financial columnist end bin contact COINS began in 2012, quickly became the preacher of virtual currency. But by the end of 2013, the “old” suddenly change, spare no effort against the currency. He in an interview with sina science and technology, the currency is now the biggest problem is that there is no application, is essentially a “show just funny to revolt”.

, according to people familiar with the “old port” has sold all of the COINS, in fact has left the scene. And practitioners within the circle, don’t seem to find a better way, medium of exchange the currency’s value.

in an interview, fire currency network CEO and co-founder Li Linju an interesting example: now you can’t discuss the purpose of the currency in China, as in north Korea about the future of the Internet. “Don’t let you use, what is worthy of discussion?” He said.

in the li Lin, it seems, to judge the currency to be more focus on the future use. His peers, COINS, on the other hand, China’s vice President LingKang believes that the currency in the future or to locate in micropayments and cross-border payments.

however, li Lin and LingKang, acknowledge the currency usage scenario is still in the exploratory stage.


source: sina science and technology