Q&A on 915
09/16/2017 by LakeBTC.com
- Is LakeBTC shutting down?
No. The impact of the Chinese ruling on LakeBTC is limited. The only major change is that our services to all Chinese citizens will be suspended. LakeBTC is a legitimate business which follows applicable laws and regulations.
LakeBTC has very small footprints in China because
- LakeBTC is not a Chinese corporation. It has been registered in BVI since 2014.
- The vast majority of LakeBTC's business comes from over 160 countries other than China.
- LakeBTC's team, advisory board and corporate partners come from all over the world.
- LakeBTC ceased CNY operations almost a year ago.
- LakeBTC supports six languages: Chinese is not one of them and hasn't been since 2014.
- Most or all of LakeBTC hardware resources have been physically located outside of China since 2013.
- LakeBTC's market data has never been listed on any Chinese bitcoin data website.
- LakeBTC never sponsored or attended offline events or meetups in China.
Why? Did you see the future or what?
- LakeBTC has always been an international firm, not a local one.
- Some local players abused the rules and ruined this market. For example, they allowed 0 fee, little KYC/AML requirements, margin/short and high leverage trading and futures. This gave rise to "pump & dump" and other strategies aimed at manipulating the market. It did not make business sense for LakeBTC to compete in this unhealthy market.
- You just said China is good for cryptos ...
Yes we did, and China was indeed.
But things have changed. In the past many government officials were pro-cryptos and pro-innovation. Some foul-players took that progressive attitude for granted and abused the system (see above). Too many risks were accumulated. Now officials at the very top of the government have decided to step in and take over. The regulations are likely to be much more strict in the foreseeable future. In some ways the situation resembles what happened after the 2008 financial crisis.
- Is this bad news for cryptos?
In the short term there may be a negative impact on the price of cryptos. In the long term, without these foul players and fraud-like schemes, things may not necessarily be bad for the crypto community.
- Is the LakeBanker token sale still live?
Yes. Although our Phase 1 has been postponed to September 29, 2017, 3pm UTC as the market has been too volatile. Please see our press release for full details. Contributions are still accepted in advance of the official onset of Phase 1 for those that was to guarantee participation and avoid potential last-minute problems. Our Token Sale was never promoted in China, its website has no Chinese version and Chinese citizens are excluded from participating. As with LakeBTC, LakeBanker will be at most minimally affected by recent events.
- I'm an existing user from China. What do I do now?
Per the latest regulatory environment change, please withdraw all your funds as soon as possible in the source currency at deposit time. For example, if you deposited BTC, please withdraw the funds in BTC (instead of GBP or EUR, etc.). Likewise, if you deposited GBP, please withdraw them all in GBP only.