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China is planning to Ban Bitcoin Exchanges

According to Wall Street Journal, China is planning to shut down domestic bitcoin exchanges.

Chao Deng reportedly says that, the People’s Bank of China (PBoC). It has drafted instructions banning Chinese platforms from providing cryptocurrency trading services.  Particularly, just a week before when Beijing announced it was banning initial coin offerings, a virtual currency-based method of fundraising.

Walls Street Journal:

“Regulators in China have been investigating the domestic market for bitcoin and other virtual currencies since the beginning of the year. For a while, officials considered enacting anti money-laundering rules on exchanges, even circulating a draft of such rules for them to follow”.

Meanwhile, Beijing’s motivation for the exchange ban is unclear. It come amongst of broad clampdown on financial risk in the run-up. It is a key Communist Party leadership reallocation next month. Bitcoin upsurges around 600% in dollar terms in the previous year, fueling concerns of a bubble. The PBoC had done trial runs of its own prototype cryptocurrency, taking it a step closer. Therefore, it is the first major central bank to issues digital money.

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Also Read: China bitcoin exchanges waits for clarification on closure report

Mark McFarland, chief economist at Union Bancaire Privee SA HK in Hong Kong, says, “There has been a general tightening of the screw on regulating financial and monetary conditions. All of these things suggest a longer-term process. It is of tightening scrutiny of activities that aren’t in the normal sort of monetary realm”.

The country’s 3 biggest exchanges: BTC China, OKCoin and Huobi says on Monday that they have not received any regulatory notices about bans on cryptocurrency trading.

Read Next: Binance Exchange Concerns Over China ICOs Ban

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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