Central Bank of China meets Bitcoin Exchanges behind closed doors

Central Bank of China meets Bitcoin Exchanges in private today. What is the topic of discussion? How will be the digital currency affected?

8 February, AtoZForex - The People’s Bank of China (PBOC) is reportedly holding the meeting with some of the Chinse Bitcoin exchanges today. The online reports highlight that the meeting is stressing the concerns that the regulatory oversight of the digital currency will get stricter.

Central Bank of China meets Bitcoin Exchanges

The authorities from the PBOC are meeting today with the representatives of several Bitcoin trading venues. Reportedly, the meeting is private and the topics of the discussion are not certain. However, people familiar with matters said that the money laundering issue will be on agenda of the meeting.

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Earlier last month, AtoZForex has been reporting that the PBOC has decided to inspect the Bitcoin enterprises across China. The formal statement of the central bank could be found on the official website of the PBOC in Mandarin. Chinese central bank appeared to be closely eyeing the companies that are allegedly operating “beyond the scope of the enterprise and the market.”

Bitcoin dips after news about the meeting

Nevertheless, following today’s report about the private meeting between PBOC and Bitcoin exchanges’ representatives have weighed on Bitcoin. The cryptocurrency has appreciated as much as 1.7 percent earlier but dipped about 2 percent by 4:30 China time. Tian Jia, a Beijing-based Bitcoin trader, stated:

“There are a lot of people shorting bitcoin now, one because of the regulatory environment, another because the price is relatively high. The fact that PBOC continues to look into this issue might make people think that the whole thing isn’t over. Based on past trends, whenever the central bank holds meetings with exchanges the price will drop.”

China has taken the leading role in the digital currency market, as Bitcoin has become very popular across the region. The appetite for cryptocurrency in China has been driven by the hunt for alternative assets, the low cost of electricity and zero exchange fees. However, starting from January 24th, 2017, four major Chinese Bitcoin exchanges have officially commenced charging trading fees to all users, investors, and traders. Specifically, these exchanges include BTCC, OKCoin, Huobi and Yunbi.

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