Bitcoin, the first and most successful application of blockchain technology, has seen a remarkable price surge recently. Data from OKCoin, a leading Chinese Bitcoin exchange, shows Bitcoin prices rising consistently for nearly three months, peaking at 5,100 CNY before settling at 4,744 CNY at press time.
This bullish trend has attracted attention from investors and media outlets alike. Bloomberg reported unnamed sources suggesting China's central bank is studying Bitcoin more deeply to prevent potential "underground forex transactions" using the cryptocurrency.
Myth 1: Bitcoin as a Forex Loophole
Rumors suggest investors could buy Bitcoin domestically and sell overseas to circumvent forex controls. OKCoin CEO Xu Mingxing dismisses this as unrealistic:
👉 Learn how OKCoin prevents financial misuse
"Anyone making this claim has never actually traded Bitcoin," Xu states. Chinese platforms conduct strict anti-money laundering (AML) checks, requiring proof of fund origins for large transactions. Overseas withdrawals face even tougher scrutiny, needing legal documentation. Bitcoin's price volatility also makes this method impractical compared to traditional forex channels.
Blockchain's Regulatory Compliance
Emerging from its role in Bitcoin's infrastructure, blockchain technology has gained global financial traction with:
- Major banks joining R3 blockchain consortium
- Deloitte applying it to corporate audits
- NASDAQ testing it for securities issuance
In China, the Blockchain Application Research Center was established with Xu Mingxing as inaugural chairman. The center received endorsement from Wu Xiaoling, Vice Chair of the NPC Financial Committee, who advised:
- Adopt incremental rather than disruptive financial solutions
- Create a more accessible Chinese term for blockchain
- Focus on SME financing applications
- Collaborate with international organizations
"Technology should never bypass regulation," Xu emphasizes. "We welcome regulatory frameworks that prevent illicit use while guiding healthy industry growth."
👉 Discover OKCoin's regulatory compliance measures
Myth 3: The "Chinese Aunties" Bitcoin Frenzy
Contrary to rumors about middle-aged women dominating Bitcoin investment, OKCoin's data reveals:
- Primary investors: 30-45 year old males
- Early adopters: Tech enthusiasts
- Current demographic broadening to include younger investors and professionals
Xu attributes such myths to public speculation about unfamiliar domains. With China's draft Civil Code recognizing virtual assets like Bitcoin as legally protected property, mainstream understanding is gradually improving.
"Bitcoin's volatility makes it unsuitable as a store-of-value asset," Xu concludes.
FAQ Section
Q: Can Bitcoin really bypass forex controls?
A: No. Strict AML policies on exchanges and banking systems make this practically impossible.
Q: Is blockchain technology regulated in China?
A: Yes. Authorities are actively studying blockchain applications within existing financial frameworks.
Q: Who actually invests in Bitcoin?
A: Contrary to stereotypes, data shows tech-savvy professionals dominate the investor base.
Q: Why do Bitcoin rumors spread so easily?
A: The technical complexity leads to public misinformation that often gets sensationalized.