Some bitcoin platforms are still operating, claiming an annual yield of 40%.

Beijing, September 21, according to the Voice of China’s “News Evening Peak” reported that early this month (September), the central bank, the Central Network Information Office and other seven ministries and commissions jointly issued a “bulletin on preventing the risk of token issuance financing,” demanding that all types of token issuance financing activities should be stopped immediately. A number of domestic Bitcoin trading platforms announced that they would stop all transactions on the digital asset trading platform. Some media reports say that many Bitcoin financial platforms are still in normal operation under the situation that the trading channels in the domestic Bitcoin market have been stopped. Some of them claim that the annual yield of their products can reach 40%.

Stop trading, gradually withdraw, timely retreat… Earlier this month, the central bank and other ministries issued a letter calling for the suspension of various token issuance and financing activities, the major domestic Bitcoin trading platforms have responded, issued a deadline to close the RMB and Bitcoin trading business announcement.

Mr. Wang, a Bitcoin player, said that many friends around him had already withdrawn and cashed in because of the suspension of intravenous transactions, including him.

Mr. Zhang, who invests in another “ether currency” virtual currency, says he has begun to “cool down” as one of the many retail investors. “In the past, when there were no stop documents, ether currencies could be converted into Renminbi on the trading platform, but not now. Now it can only be exchanged for coins, such as converting the currency into bitcoins.

As of 1:00 p.m. today, the Bitcoin price of BTCTRADE was RMB 21666, the Bitcoin price of CHBTC was RMB 23,000, and the Bitcoin price of Fire Coin was RMB 22,345, on average nearly 10,000 yuan lower than the recent peak.

Bitcoin trading platform ushered in a wave of closures, but reporters found that many Bitcoin financing platform is still in normal operation, and even a platform that can transfer Bitcoin and other financial products to the same platform.

By searching for key words such as “Bit” and “Finance Management”, the reporter found a financial platform named “Bit Buy Finance” which was officially introduced as a “financial platform based on the block chain ecology” and provided a variety of virtual monetary financial products such as “hedge fund”. Customer services on the platform say their financial products make customers profitable by quantifying hedging and using price differentials between platforms in the virtual currency, with annual yields of up to 20% for their own Bitcoin hedge funds.

Asked if the “Bulletin on Prevention of Token Issuance Financing Risks” issued by the central bank and other seven departments had any impact on the platform business, the platform customer service said, “No impact, because we are not engaged in any token activities. We belong to the financial management, not the token financing behavior, there are essential differences. The country did not say that Bitcoin-related can not be done, but ICO tokens to stop the behavior, we are not in the red zone at present.

Bitbank, a block-chain financial services bank, also offers Bitcoin-related services, with an annual interest rate of 6.6 percent. Bitbank is actually a virtual bank, because it does not involve the transaction of virtual currency to RMB, so it is not affected by the above documents. “All our businesses here are normal, because we do not deal with legal tender transactions. The income we give you is also given back to you in currency, not RMB, so we are all normal for the time being.

Another Lujiazui Bitcoin Fund, introduced as the world’s first Bitcoin Fund, claims its “Bitcoin Arbitrage Fund: an estimated annual yield of up to 40%”, based on the principle of “using the price difference between domestic and foreign exchanges, or between two foreign Bitcoin exchanges, through their own development of automatic arbitrage.” Robots carry out risk free, low buy, high sell arbitrage.

Liu Peng, a well-known observer of the Bitcoin industry, said investors have a high risk of buying financial products such as the Bitcoin Fund. “This fund is hard to define. It’s not clear whether it’s a public offering or a private placement. You can see where they come from. He mainly purchases Bitcoin as a’commodity’, not securities or debt, foreign exchange, so the law is difficult to define. Who controls the platform? How big is his pool? Will there be any risk of running? How about wind control? All these need to be considered. ”

Voice of China has repeatedly exposed the “virtual currency” as a prop and cover, is actually pyramid selling, illegal fund-raising and other illegal financial activities.

Li Aijun, Dean of the Internet Finance and Law Research Institute of China University of Political Science and Law, warned investors not to be fluky. “The risk of an unregulated trading market is very great. Because the investor does not know who is the controller of these trading targets, for example, how the banker manipulates, manipulates to what point he wants to withdraw, which is not clear to everyone.

How to determine whether bitcoin management is illegal or not will continue to pay attention to the voice of China.

The article is transferred from: http://tech.qq.com/a/20170921/038199.htm