Quote from: billyjoeallen on January 27, 2014, 05:27:26 AM

I think it's possible that the owner/operators of those exchanges are influential party members or more likely related to influential party members. The payment processor issue was more about favoritism against Bobby Lee (the outsider) than anything else. It's also very possible that the ban will drive renmimbi/yuan to the exchanges as people thing this may be their last chance to buy a rapidly appreciating asset that allows them to evade capital controls.

Many people agree, however, here are my thoughts on that. Bobby Lee was the one who broke the news about the 31st to CoinDesk.

http://www.coindesk.com/china-bans-payment-companies-working-bitcoin-exchanges-sources-claim/

Bobby Lee had sources inside the PBOC meeting with 3rd party payment providers who advised him of the meeting. I believe Bobby Lee is as connected as anyone, and none of this has to do with any "Guanxi".

So why has Bobby Lee and BTC China given up the throne to Huobi? Because Huobi is operating outside of the law, and I would argue Bobby Lee actually has more sway with regulators, and knows his time is up. In a Wired.com interview, Lee states that BTC China isnt thinking about the direct payment route because they would first need to be licensed as a payment processor in order to send and receive funds to and from clients and the company's corporate bank account.

http://www.wired.com/wiredenterprise/2014/01/huobi/