China Bitcoin exchanges to allow withdrawal in June
10th May, Beijing-According to a report by Caixin, the “Big Three” Bitcoin exchanges in China: BTCChina, OKCoin and Huobi will be facing a penalty with unknown amount. Two important regulatory documents: Management guideline for Bitcoin Exchange and AML guideline of Bitcoin Exchanges, are expected to be released in June.
The news comes with the ATH price of Bitcoin. Last night, the BTC price in China has passed 10,000 CNY , or a five digit number, for the first time in history. Many bitcoiners posted screenshot on their Wechat moment to honor that moment.
10,000 CNY milestone reached on 10th May on OKCoin.
The report contributes the rise of bitcoin to Japan’s legalization and merchants adoption and overseas market Booming like Korea.
The rise was led by overseas markets. Bitcoin on Bitfinex rise 5.4%, reached 1,779 USD or 12,287.9 yuan. Japan exchange BitFlyer soared to 2.214 million yen, equivalent of 13,004 yuan. South Korea exchange Bithumb reaches 2,318,000 won, or RMB 14,082 yuan.
According to the study of Huobi, Japan has become the world’s largest bitcoin trading market, accounting for 46.4% of the global volume. United States accounted for 26.4% while China’s trading volume fell to 10%, ranking the third.
China used to take 90% of the global trade volume thanks to 0 fee policy and high-frequency traders, or trading bots. But the PBOC-led regulation made the exchanges to impose transaction fee this February and HFT were left with no profits.
At present, the on-site inspection is nearing its end. According to the inspection findings, the relevant administrative penalty resolution has been drafted and the paper is being reviewed. Two key issues must be corrected: one is the fiat and BTC loaning business and the second is the flawed AML system. The rectification requirements finally were compiled into the upcoming regulatory documents: the management guideline of Bitcoin exchanges and the AML guideline of Bitcoin Exchanges. According to the news, these two documents are expected to be released in June and bitcoin withdrawal suspension could be removed subsequently.
It’s generally interpreted as good news as fears of shutting down the exchanges are now cleared and the withdrawal is definitely what the users are waiting for.