China 31st January Deadline Explained

There's a lot of talk still going on about the 31st January deadline, so let me summarize it very simply.

There IS a deadline for the 31st:

All 3rd party payment processors must cease doing business with Bitcoin-related businesses by January 31st.

Some examples of third party payment processors:

Paypal
Tenpay
Alipay

This information is already priced into the market. No major exchange in China is using third party payment processors to process withdrawals or deposits. All payments are being made through direct bank payment (no third party).

Whether or not this practice is legal / will last the test of time is another matter in itself. I understand people who think it is not. However, this has absolutely no relevance to the third party payment processor deadline. Stop associating the two.

Reddit link: http://www.reddit.com/r/BitcoinMarkets/comments/1w1lsb/the_31st_deadline_explained/

 

[Cas]

So basically the Chinese btc exchanges only accept bank transfers from China, and this has been done for all this time now?
Soo basically there is no change at all, it's just illegal for chinese exchanges to use 3rd partys for deposits.

 

At the moment, Chinese exchanges are funded by sending money to the company's bank account, yes. This has been the way these exchanges were funded since third party payment processors were forced out by the Chinese government.

There is no explicit evidence of the bank transfer method being legal or illegal, but the exchanges doing it have been using it for over a month so far. The Chinese exchanges account for the majority of all volume in BTC transactions.