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for those wondering about the chinese statement, they basically finger bitcoin hackers as the ones who took down PBOC site (with DDOS) and also their weibo, and that the hackers are foreign. They take this to be retaliation for the PBOC regulations causing the selloff in cryptocoin markets, and are fixing their sites in the meantime.

央行网站疑遭比特币玩家攻击

2013-12-18 18:13:02  有0人参与
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中国人民银行网站和微博今日同时被黑,网站间歇性打不开,新浪微博@央行微播 评论冲入大量比特币水军,传来自国外,估计与今日央行监管比特币造成其市场大跌有关。央行相关人士表示网站正在修复。

央行日前约谈国内第三方支付公司,明确要求关闭比特币、莱特币等交易通道。受此打击,比特币价格大跌。有分析称,比特币或将退出中国市场。

此前12月5日,央行发布《关于防范比特币风险的通知》(下称《通知》),不承认比特币的合法地位,比特币价格随即大跌。

The china source: http://3g.163.com/ntes/special/0034073A/iframe.html?url=http://help.3g.163.com/13/1218/18/9GD7FS5A00963VRP.html

From Zerohedge

Bitcoin Crashes After China Bans New Deposits; PBOC Gets DDOSed In Retaliation

Yesterday it was the US Treasury’s Financial Crimes Enforcement Network that tightened its grip on businesses that accept Bitcoin. Today, it is China, where the world’s largest Bitcoin exchange by trading volume, BTCChina announced that he had received word from “above” that his platform would no longer be able to accept renminbi from BTC buyers. “As of right now, we have received notice from our third-party payment company that they will disallow customers from making deposits into our exchange,” Bobby Lee, a former Yahoo developer who co-founded BTCChina this year, told the Financial Times.  The result, not surprisingly, is an overnight crash in BTC, which crashed by 50% from $900 two days ago to just $455 hours ago.

More from the FT:

With its booming market for commerce, China had been seen by Bitcoin enthusiasts as fertile ground for the virtual currency. However, regulators were concerned that people could use Bitcoins to skirt the country’s capital controls. They also grew alarmed at the rampant speculative demand for Bitcoins, warning it had the makings of a bubble.

 

The Chinese central bank took a hard line two weeks ago, banning the country’s financial institutions from handling Bitcoin transactions.

 

Although the People’s Bank of China said individuals were still free to trade it at their own risk, the ban on third-party payment service providers from doing Bitcoin business effectively makes new purchases of the virtual currency impossible.

 

“I’m not that surprised,” said Hong Hao, chief China strategist at Bank of Communications. “Even if the amount of Bitcoin in circulation wasn’t that large yet, it was a potential threat to the monetary system.”

 

Mr Lee of BTCChina said the emphasis of the notice was on deposits, meaning that customers with existing renminbi balances would still be able to withdraw their cash from the exchange. “They are completely safe,” he said, adding that people with money already deposited on the exchange still had the option of buying Bitcoins.

 

 

China’s capital controls mean it takes time for investors to arbitrage the difference between prices in and outside the country.

In a world where the central banks are actively engaged in gold capital controls (and have been for over 40 years), and the BIS has its own in-house gold prices suppression team, nobody could have possibly seen this coming.

We are, of course, joking. But some who apparently were angry and did not see this coming, were the computer hackers of the world. As @george_chen reports, the PBOC reported it was promptly DDOSed in retaliation for China’s overnight crackdown on Bitcoin.

View image on Twitter

George Chen @george_chen Follow

BREAKING NEWS: CHINA CENTRAL BANK (PBOC) WEB UNDER ATTACK; UNSTABLE FOR ACCESS; LOCAL MEDIA BLAME BITCOIN INVESTOR

George Chen @george_chen

BREAKING NEWS: CHINA CENTRAL BANK (PBOC) WEB UNDER ATTACK; UNSTABLE FOR ACCESS; LOCAL MEDIA BLAME BITCOIN INVESTORS pic.twitter.com/uXEoPWfxoP

MORE: PBOC TOLD MEDIA THIS AFTERNOON “WAS FIXING WEB”; MEDIA BLAMED “FOREIGN BITCOIN INVESTORS” FOR DDOS ATTACK story:http://163.fm/AC2HPOd

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