Foreign media misreported the "Bitcoin ban", and Bitcoin prices were sniped

Recently, the People's Bank of China summoned the heads of three major Bitcoin exchanges in Beijing and Shanghai, requiring the exchanges not to engage in volume manipulation and offline promotion activities, and at the same time reminding users to view virtual currencies correctly, invest rationally and bear their own risks.

However, some media, mainly in the West, used this incident to spread panic among Chinese investors, causing the price of Bitcoin to fall to $830.

No Bitcoin ban

After the Bitcoin exchange BTCC released the content of its conversation with the central bank, the price of Bitcoin rebounded quickly. Both local Chinese media and exchanges have given investors the right message that China has not issued a ban on Bitcoin.

Beijing-based financial media Caixin reported:

"For Huobi and OKCoin, two trading platforms located in Beijing, the central bank requires that they should not mention content related to the depreciation of the RMB during their promotions and should not conduct offline promotions, etc."

BTCC, a Shanghai-based bitcoin exchange, said in a statement:

"The press release issued by the People's Bank of China...pointed out that Bitcoin transactions have significant volatility. It also cited a 2013 notice from five ministries and commissions, which pointed out that Bitcoin is a virtual commodity that does not have the same legal status as currency and cannot and should not be circulated and used as currency in the market. Institutional and individual investors should have a correct view of virtual commodities and virtual currencies, invest rationally, bear their own risks, safeguard their own property security, and establish correct monetary concepts and investment concepts."

Spreading fear

In short, the Chinese exchanges and government only issued a simple warning to investors, but the news was misinterpreted by some foreign media.

For example, Zero Hedge published an article on January 8th stating that "China bans Bitcoin." On the evening of January 6th, Babbitt International correctly stated the statement of the People's Bank of China, and various narratives published by Western media could be misunderstood as a ban on Bitcoin.