The Chinese regulators are having the opposite effect.
By shutting down access to bitcoin domestically, they drive up the demand for foreign exchanges more dramatically. Chinese evaders are rushing to get their bitcoin ledger entered, protecting their loot like gold. Bitcoin prices responding up with each new central bank threat.
The price volatility they cause is surplus to existing bitcoin holders. The communists are better off legalizing the currency but requiring they clear via the government blockchain portal, for a fee on yuan. Then the authorities give citizens' the gain from public ledger but collect the monetary insurance fee for the yuan.
Consider the volatility
What the authorities do now is causing a 10% volatility in bitcoin exchanges, likely much worse. We get huge jams. The authorities could charge a variable fee, around 5%, in a monopoly setting, to exchange yuan for blockchain, anonymously. Volatility in coinage is free money, easily smoothed.
A five percent typical fee would last a long time and generate the appropriate communist exit fee. Add a term fee for rare, large transfers. Well, in fact, sell bitcoin exits on an automated, Redneck compatible trading pit. Call my VP, or ask your favorite banker. I can set the Communists up with a very stable yuan system hedged properly by international bitcoin.
My fee is 200 bitcoins.
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