seven reasons why Chinese regulators shut down Bitcoin exchanges today I'm going to talk about some Bitcoin news a professor at Chinese Renmin University has offered his interpretation on why Chinese regulators are shutting down the Bitcoin exchanges this was short after their IC o—- been in China and he outlines seven key reasons and I'm gonna share them with you right now so this professor is a director of Renmin Center for pintuck and internet securities and he he came up with with some reasons as to why the Bitcoin exchanges are going to be shut down in China so his first point was his concerns about licensing he said that the financial institutions are required to obtain licenses to carry out business such as by the Chinese Banking Regulatory Commission and the Chinese Insurance Regulatory Commission however he noted that at present China's domestic virtual currency trading platform at the relevant legal license which leads to the virtual currency trading platform free from the existing regulatory system in fact there is a huge business risk he said the second point he came up with was regarding the nature of Bitcoin himself itself the mechanism of a limiting the amount of the encrypted money by specific code is controversial basically he's questioning the they're questioning a blockchain and in the fact that it cannot be printed and thus controlled the third and fourth reason was money laundering and pyramid schemes and he said that how digital currency transactions can be used for money laundering and financial fraud as well as to avoid foreign exchange controls according to him because virtual currencies have no borders cross border payments through virtual currencies can avoid foreign exchange controls and there are there is a great needs to guard against such anonymous transactions for countries and economies where capital projects are not fully open basically I mean use cash for money laundering you see a lot of things you know with regarding money laundering right now the thing that's happening right now is that for example in Los Angeles the drug dealers are the paying a clothing company money in cash and then the clothing company was sending product to Mexico that the cartels were selling to retrieve their monies so there's there's no way around money laundering and and and and pyramid schemes right if there's money involved there's going to be fraud so this disappointment is a bullshit reason in my opinion if you're if you disagree with me leave a comment below and I will I will discuss this with you but let's go on with the fifth point concerns market manipulation anyone investing tens of millions of dollars will be able to easily manipulate the price sending its skyrocketing he explains any losses are passed on to ordinary investors with less information and a disadvantaged position detail which it's it's normal again you know this happens in any any market if you invest in something that the big players I'm gonna eat this ball players right the big fish are you eat this needs small fish so what you want to do is you want to get educated as fast as possible which is why we're creating this content for you guys for you to help you get educated on this stuff right the six point involves security risk data risk an information security risk are intertwined he elaborated if the security system is not strong enough hackers can access bitcoins which will lead to a large amount of data loss at the Bitcoin exchange and in repairable damage he added fair enough no argument there the professor's final point about Bitcoin being use in dark net markets which have not been effectively regulated he described before adding that the dark net transactions are without strict protective measures and will not strictly enforce anti money laundering kyc and other effective measures and are even intended to a lot anonymous transactions government cannot effectively monitor the shortcomings of the dark net which again dark net mostly Meniere's is being used for for this right now most of the transactions in Bitcoin is legitimate now they started with Bitcoin in in places like Silk Road now they use monaro for this so this for me this is an invalid argument but I'm really curious to find out what you guys think down in the comment section so let me know your thoughts about this article and let me know if you want to have more of these Bitcoin Neos or ICO updates or whatever you want to get more news updates on Bitcoin cryptocurrency news let me know in the comments and I will be doing more videos like this very soon see you in the next video guys