Chinese Central Bank Warns Bitcoin Exchanges, Again
In a public announcement today, the People’s Bank of China (PBOC) has revealed its warning toward 9 local bitcoin exchanges operating in the country. Reports of a ‘closed-doors’ meeting surfaced yesterday, one wherein the PBOC was said to have met with representatives of Chinese bitcoin exchanges. While details were scarce at the time, the Beijing branch of China’s central bank has shed further light into the private meeting and its participants. Having previously inspected and conducted on-site checks of Beijing-based exchanges Huobi and OkCoin, PBOC Beijing revealed that similar talks....
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A senior Chinese central bank official who leads the department investigating bitcoin exchanges has revealed telling insights into authorities’ current stance on the bitcoin industry in China. Since the turn of the year, the People’s Bank of China (PBOC) has taken a notable interest in the local bitcoin industry. The bank’s officials have spoken to representatives from the big Chinese exchanges, conducted ‘on-site inspections’ of these exchanges and have wielded their authority to force the industry into making a handful of notable changes. Putting an end to zero-fee trading and margin....
Bitcoin, which sustained an optimistic price rally over the past week, substantially declined in value within the last 24 hours, plummeting by 21 percent after the Chinese government issued a warning to Bitcoin users against potential risks. On Jan. 5, the People's Bank of China (PBOC) released a statement to emphasize their stance on Bitcoin reiterating that the government of China does not consider Bitcoin to be a currency. However, the central bank of China highlighted that Bitcoin is still a virtual currency or a virtual “good,” which is legally traded and used within the country.....
Recently, the Chinese government and the People’s Bank of China offered reasonable suggestions to Bitcoin exchanges and users, discouraging fake volumes and offline scam-like promotions while asking users to maintain responsibility for their independent actions. But some media outlets, mostly western-based, used the events to spread panic among Chinese investors, leading the price of Bitcoin down to $830. No Bitcoin ban. However, the price of Bitcoin quickly recovered, as major Chinese exchanges including BTCC published statements pertaining to the discussion they had with the Chinese....
Two leading Chinese Bitcoin Platforms, Huobi and OKCoin have stopped users from withdrawing their bitcoin deposits. Bitcoin is a decentralized currency, but most Bitcoin exchanges aren’t. The drawbacks of such a model are now being witnessed firsthand by the Chinese cryptocurrency community. The leading Bitcoin exchanges in the region, OKCoin and Huobi are planning to stop their customers from withdrawing bitcoin from their respective accounts. The new measures implemented by two of the country’s big three exchanges follows the increased scrutiny of the Chinese Central Bank to prevent....
These Chinese are, without any doubt, at the forefront of the price increases behind Bitcoin late this year, and as a result, the cryptocurrency has been making headlines just about everyone. We're now at a point where huge businesses are accepting the currency, and even governments are recognizing Bitcoin as legal tender. But for as long as Bitcoin has existed, there's a been a black cloud above it. Central banks. It's the exact opposite of what Bitcoin is all about. No authority, no central bank. So it's interesting to know what the Chinese Central Bank has to say on Bitcoin. According....