Explaining The Regulatory Impact on Bitcoin in China

Domestically, Bitcoin in China has been relegated to the status of QQ Coins.

QQ Coins developed from the QQ Messenger platform in the early 2000s, and functioned as a way to buy and sell virtual items in games, to upgrade to the next level of a video game, to get that special shield that you would otherwise have to wait to Level 50 to acquire. QQ Coins are more similar to Craftcoins in their usage today in China, rather than Bitcoin’s much more open use abroad.

China’s government in 2009 felt QQ Coins were becoming too much of a potential threat to the renminbi, and in 2009 decreed QQ Coins as a fictional currency. Needless to say, QQ Coins were leashed in China from that day.

This week saw China’s government use the exactly same terms, 虚拟货币, or fictional, theoretical, virtual currencies. But the tone of the words is more towards fictional since they talk about the need to education the people of what a “correct” currency is.

Chinese people cannot use QQ Coins to purchase any real goods and services. That includes Baidu, that includes Jiangsu Mobile, China Mobile, everything. Real products and services offered by these companies cannot be purchased with “fictitious” currencies.

This is why Jiangsu Mobile changed their website to remove any mention of accepting Bitcoin payments.

Bitcoin now is of the same legal and utility status as QQ Coins in China now. All the above companies now would not dare accept Bitcoin as payment for any real goods and services, due to the People’s Bank of China and joint regulatory commission decree. Any legal company in China would not dare accept Bitcoin as payment for any real goods and services under the current regulations.

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