Chinese central bank warns bitcoin exchanges against margin trading and money laundering

Regulation | February 10, 2017 By:

The People’s Bank of China (PBoC) has issued a new warning to domestic bitcoin exchanges following a “closed-door” meeting with them held on 08 February 2017.

Having previously inspected and conducted on-site checks of Beijing-based exchanges Huobi and OkCoin, PBOC Beijing revealed that similar talks were held with the heads of 9 bitcoin exchanges.

The lesser-known trading platforms include CHBTC, BTCTrade, HaoBTC, Yunbi, Yuanbao, BTC100, Jubi, Bitbays and Dahonghou.

The PBoC ordered the exchanges not to engage in margin trading, money laundering or practices that violate foreign exchange, taxation and advertising laws. Trading platforms will be closed if they seriously violate regulations, according to the statement.