The Business Management Department at the People’s Bank of China released a statement today elaborating on the meetings it had with nine Chinese cryptocurrency exchanges: CHBTC, BTCTrade, HaoBTC, Yunbi, Yuanbao, BTC100, Jubi, Bitbays and Dahonghuo.
After gaining an understanding of how the exchanges operated, PBoC regulators instructed management teams at the nine exchanges to follow all regulations so at to avoid any legal complications.
Regulators laid specific emphasis on adherence to KYC/AML rules and regulations, in addition to reigning in excessive margin trading and keeping an eye out for potential money-laundering activities.
Last month, the top Chinese exchanges - BTCC, Huobi and OKCoin - terminated margin trading and starting charging trading fees at the behest of the PBoC.
However, the smaller but still popular exchanges like BTC100, Yuanbao and Yunbi, did not amend their policies in light PBoC’s actions at the ‘Big Three,’ assuming they would absorb some of the fleeing margin traders from the big exchanges.
In the statement, the PBoC said any serious violations would lead to swift closures:
“If the exchange(s) violated the above requirements, and (if) the circumstance were serious, the inspection team may ask the relevant departments to close down the exchange(s) according to law.”
Two of the investigated exchanges - CHBTC and BTCTrade - have already announced they will begin charging fees on trades:
"In order to further curb speculation, and to prevent price volatility, the BtcTrade platform will began to collect transaction service fees by February 13, 2017 12:00 noon."
"CHBTC has decided to charge transaction fees for all platforms from February 13, 2017, at 12:00 on February 13, 2012. In order to avoid over-speculation on bitcoin, and to avoid overheating and to prevent social risks."
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