The crash has almost nothing to do with the "quasi"-ban on bitcoins and everything to do with new ID verification requirements by BTCChina.
Same old story. An exchange attracts money launderers and price manipulators. Then requires ID verification. The criminals flee to another exchange.
My guess is someone will set up the new btcchina in India soon.
I would believe that, except that it doesn't make sense for somebody who doesn't want to get caught in ID verification to dump less-traceable bitcoins on BTCChina for more-traceable CNY.Same old story. An exchange attracts money launderers and price manipulators. Then requires ID verification. The criminals flee to another exchange.
My guess is someone will set up the new btcchina in India soon.
That scenario would have played out like the Mt Gox withdrawal problems this summer, where traders with trapped fiat would buy bitcoins, withdraw them to another exchange, and sell there.
dumb money dumped, smart money moved




