China's changes

Changes at Chinese trading firms, Zcash anonymity confusion, digital currency complaints, Chinese bank live blockchain
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January 13th, 2017
"History doesn't repeat itself, but it does rhyme." – Mark Twain
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Several of China's major bitcoin exchanges have altered or suspended their lending-based bitcoin trading services.

CoinDesk has spoken to bitcoin traders and industry representatives in China to gain some clarity on the changes made.

The moves appear to affect margin lending operations at BTCC, OKCoin and Huobi, although only BTCC has officially confirmed this.

BTCC CEO Bobby Lee acknowledged that his firm had received 'informal guidance' from the People's Bank of China. However, it is unclear whether the changes are in response to complaints about the marketing practices, or with the lending service itself. It is also uncertain if the changes are temporary or permanent.
 
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Wait, there's more:
Blockchain's New R-Word (And 3 Other Trends for 2017)
*Year in Review*: Simon Taylor, co-founder and director at 11:FS, predicts that 2017 will be the year that we can start to expect products (and, perhaps, revenue) around blockchain. He also believes that this year we will begin to see structural change in financial markets as they take steps away from centralization, and that we will see increased enterprise activity around bitcoin and ethereum. Read more.

Hardly Anyone Seems to Be Using Zcash's Anonymity Features 
In spite of its much-heralded advantages, it appears that not many people are using Zcash's signature anonymity function. For now, most users are choosing the simpler, transparent addresses (similar to bitcoin's) rather than the anonymous "shielded" option (that uses zk-SNARK technology). Part of the reason may be lack of support from vendors, but part is probably also due to lack of familiarity with the technology. Read more.

A Chinese Bitcoin Startup Has Stopped Some Services Due to Central Bank Concerns
BTC123, a bitcoin investment platform established in 2011, will stop accepting deposits for a financial management system denominated in bitcoin and the yuan, effective January 26th. In conversation with CoinDesk, the CEO cited the shifting regulatory environment as the reason, but confirmed that his firm has not been directly contacted by the People's Bank of China. Read more.

Postal Savings Bank of China Has Already Sent 100 Transactions on its Internal Blockchain
A Chinese commercial retail bank has launched a blockchain-based asset management system, built in partnership with IBM. Read more.

Just 7 People Complained to the CFPB About Bitcoin in 2016
The US Consumer Financial Protection Bureau (CFPB) has received just seven complaints about digital currency services, out of a total of 190,000 filed in 2016. Read more.
 
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Happy Friday 13th! It's a holiday in the US on Monday, so the Daily email will be taking a break. We're back on Tuesday, though, and the Weekly will be coming out as usual on Sunday.

Have a great weekend!
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