Chinas Bitcoin exchanges stop margin trading

Friday 20 January 2017 10:45 CET | News

Huobi and OKCoin, two large Bitcoin exchange businesses by volume, have officially announced that have discontinued margin trading services.

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”.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Huobi, OKCoin, Bitcoin exchanges, blockchain, cryptocurrency, China, margin trading, PBoC
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies