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China's Central Bank to Continue Bitcoin Exchange Inspections

(@mpmcsweeney) | Published on January 25, 2017 at 13:11 BST
News

China's central bank plans to continue scrutinizing domestic bitcoin exchanges.

The People's Bank of China (PBoC) released its latest statement detailing how it would oversee the industry today, a move that comes weeks after it first began publicizing meetings with representatives from BTCC, Huobi and OKCoin.

The PBoC went on to say that it would oversee the space more closely, later finding fault with the exchange’s policies on margin trading (though no penalties have been levied).

According to the PBoC, that scrutiny will continue via additional on-site inspections.

The central bank said in a translated statement:

"According to the initial inspection and the problems found, the inspection group decided to continue to focus on payment and settlement, anti-money laundering, foreign exchange management, information and financial security and other aspects of further examination."

The statement also included a warning to investors, who the central bank said "should pay attention to bitcoin platform transactions, such as legal compliance, market volatility, financial security and other risks".

The PBoC’s statement comes amid a sea change within the country’s exchange ecosystem.

Following guidance from the central bank, the three major exchanges ultimately halted their leveraged trading services, and this week launched new fees on trading.

Yet while prices have seen a drop in volatility, volume at those exchanges has fallen sharply in the wake of the adjustments.

As put by Beijing-based over-the-counter trader Zhao Dong:

"Bitcoin liquidity in China is much, much weaker than before."

PBoC image via Shutterstock

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