Bitcoin Exchanges Can’t Work Without Regulations

The director of the People’s Bank of China has shed some light on his perspectives circulating Bitcoin after the central bank’s latest regulatory inspections on Bitcoin exchanges. In a translated summary published in Twitter by Zhou Xuedong, stated that the main part of Bitcoin traders are young people and that some trading systems falsified volume trying to attract more funding.

After the United States Securities and Exchange Commission refused to approve the Bitcoin Exchange Traded Fund created by famous Winklevoss twins, Zhou Xuedong noted that Bitcoin exchanges in China could not work without any regulations. In January, it was stated that the People’s Bank of China had performed assessments on main Chinese Bitcoin exchanges such as BTCC, OKCoin and Huobi.

the People’s Bank of China

A lot of people believes that the increased value within the cryptocurrency was attracting the attention of government because it was trying to decrease capital outflows, which were occurring via the cryptocurrency. Therefore, trying to follow the regulatory necessities enforced by the People’s Bank of China upon Bitcoin exchanges, three major Chinese Bitcoin exchanges such as BTCC, OKCoin, Huobi introduced that it suspend Bitcoin withdrawals.

These three main Bitcoin exchanges in China announced that they will resume cryptocurrency withdrawals during this month, but the suspension continues because Bitcoin exchange wait for approval from the People’s Bank of China. However, there is no any information about when exchanges will obtain regulatory approval and resume the Bitcoin withdrawals. Therefore, it looks like this suspension may continue much longer than one month.

btc

Even as the People’s Bank of China seems set on regulating the currency, it remains to be seen how precisely this could pan out. Earlier this month, it was stated that China should offer clarity toward the currency’s regulation and supervision of Bitcoin exchanges.

As was stated by the official from the Chinese government, the supervision of the Bitcoin exchanges and trading platforms falls beneath the remit of the People’s Bank of China. All in all, nobody knows how this will effect on the position of Bitcoin and other cryptocurrency in China, but of course it already influenced on the Bitcoin exchanges who have their hands tied waiting for regulatory approval.

admin

Leave a Reply

Your email address will not be published. Required fields are marked *