PBOC host closed-door meeting with 9 Beijing-based exchanges
On 8th Feb 2017, a closed-door meeting was held in Beijing with PBOC officials and heads of 9 Beijing-based bitcoin exchanges. These 9 exchanges are Chbtc, Btctrade, Haobtc, Yunbi, Yuanbao, BTC100, Jubi, Bitbay and Dahonghuo. PBOC reiterated the regulatory requirements:
No financial business concerning bitcoin or fiat loaning.
No Money laundry.
No breach of regulation on AML, foreign exchange and payment and settlement.
No breach of regulation on taxing and commercials advertisements.
Compared to the previous statement on the “Big Three” bitcoin exchanges, PBOC seems to be much harsher this time. At the end of statement, PBOC actually use the word “shut down” for those who are found in serious violation of regulations via “relevant authority”.
Seasoned traders may find these exchanges features mostly about altcoin trades.
Back on 26th Jan, Chbtc has already announced charging transactions fees. But the implementation of polich is subject to “further notice”.
8btc forum user comment: it’s an “edge ball“.
Btctrade made quick response by adjusting transaction fee today. A statement via weibo was announced that 0.05-0.2% transaction fee would be charged starting from 13th Feb. Eth trade was favored by the lowest fee as it is one of the major liquidity providers on Btctrade.
Unlike the “Big Three” bitcoin exchanges, these altcoin exchanges usually employs 0.1-0.5% fee across trade pairs. 8btc manage to contact Haobtc, Yuanbao, Yunbi but were told that all exchanges mentioned above were required not to comment on the meeting.
Tame Huang, CEO of BTC38, express the desire to participate in the meeting.
It’s a good thing. I would be happy to join in the meeting.
He also look forward to a meeting hosted by PBOC Shenzhen Branch. There are two Shenzhen-based: Btc38 and Zhgtrade. Btc38 has been in operation since 2013 and zhgtrade closed 15 million RMB seed round funding in June 2016.
The meeting is a channel for communication. It’s a proof that the many things are negotiable. Regulation clarity is good for the whole industry.
Authority attention has been interpreted as a good news by the industry. . The regulation backlog shall be cleared for more players’ participation and ecosystem growth.
Despite the positive outlook, Huang also expressed his concern:
We are still too small and the whole industry is inter-connected. None of us feels well if others fall.
Several days ago, a lawyer disclosed a money laundry case with direct involvement of bter in 2014, exposing the weak link in the exchanges.
Bitcoin price has recovered from yesterday’s blow, standing at around 1,098 USD at press time.
Update 1: 8th Feb, BTCC announced closing of CNY deposit/withdrawal on its’ pro exchange. Users may deposit/withdraw their funds via bitcoin. The policy will be effective on 11th Feb. Source
Update 2: Btc38 adjust transaction fee for BTC and LTC trade to 0.2%.
Update 3: The “Big Three” bitcoin exchanges all released a risk warning notice with same contents.