Chinas Bitcoin exchanges stop margin trading

Representatives from Huobi told CoinDesk that the exchange stopped its services, and that it will no longer offer margin trading on BitYes, its international alternative or its China-facing website. They also confirmed that Huobi was asked directly by the Peoples Bank of China (PBoC) to stop the services today, but that it had not previously heard from the central bank on the matter.

The PBoC has issued a statement that admits the exchanges to “have been in violation by getting into the margin financing business, causing abnormal market volatility. The inspection also found these exchanges didn’t put in proper international anti-money-laundering controls”, CoinDesk has cited The Wall Street Journal.

Despite the formal acknowledgement of changes, exchange representatives seemed to push back against the idea that there was full clarity on how Chinas regulatory climate would move forward, CoinDesk continues.

Still, in statements to Reuters, a BTCC representative added that the PBoCs requests were “not based on any official documentation”, and that the central bank has not issued an opinion that Bitcoin margin trading is “illegal”.