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PBOC to release regulatory guidelines for Bitcoin exchanges

As per a local report, PBOC will release guidelines to regulate Bitcoin exchanges under the AML framework. Bitcoin Exchanges are required to collect customer information to verify their identity, to establish internal control system to alert suspicious transactions. PBOC will be responsible for dealing with Bitcoin exchange’s non-compliance conducts.

btc aml

As reported previously, PBOC has complied a few “red lines” that must be breached.

1. Exchanges are not allowed to pump trading volume via leveraged trading, Bitcoin and fiat loaning and 0 transaction fee.
2. Exchanges must not violate AML regulations to engage in money laundry.
3. Exchanges must not violate foreign exchange regulations to use bitcoin as payment and settlement.
4. Exchanges must not evade tax.
5. Exchanges shall not carry out false propaganda or illegal pyramid schemes
6. Exchanges shall not operate financial business like securities and futures

Exchanges that cross the relines will be terminated. It’s noteworthy that the regulation storm is not targeted on bitcoin exchange only. It’s part of regulatory movement that is currently sweeping all over the cyberspace in China.

Zhou Xuedong pointed out that in addition to the existing financial and economic laws and regulations, China has very little guidelines over trading platform for virtual goods like bitcoin. At the same time, the management of Bitcoin exchanges involves multiple institutions. As the mechanism of regulatory information sharing and joint law-enforcement has not yet been established, the supervision of Bitcoin exchanges still requires joint efforts.

Bitcoin exchanges will be put under the supervision of various regulatory authorities like Business Administration, Tax, Forex etc. On-site inspection is still ongoing at the moment. One thing that could be sure is that more regulatory measures are on the way.
The official statement will definitely force more transparency on the operations of exchanges and deter money laundry attempt utilizing Bitcoin. However, anonymity is always being favored and valued not only by the cyberpunks but also other adopters. There are other means and other cryptocurrencies for people to trade and speculate. Bitcoin is not the only option for storage of value.
Will tightening regulation strangle the expansion of Bitcoin in China? and foster the untraceable coins?

COMMENTS(1)

  • hl5460
    7 months ago hl5460

    As per a local report, PBOC will release guidelines to regulate Bitcoin exchanges under the AML framework. Bitcoin Exchanges are required to collect customer information to verify their identity, to establish internal control system to alert suspicious transactions. PBOC will be responsible for dealing with Bitcoin exchange’s non-compliance conducts.http://news.8btc.com/will-the-tightening-regulation-foster-or-strangle-bitcoin

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