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China Central bank Bitcoin investigation: What is next?
12/01/2017
China Central bank Bitcoin investigation: What is next?

China Central bank Bitcoin investigation is on the lips of every Bitcoin trader globally. Digital currency depreciated following this news. What do we know?

12 January, AtoZForex The People’s Bank of China (PBOC) has released the statement, where the central bank informed the public about its intentions in regards to Bitcoin activities across the country.

China Central bank Bitcoin investigation

The People’s Bank of China has decided to inspect the Bitcoin enterprises across China. The formal statement of the central bank can be found on the official website of the PBOC in Mandarin. Chinese central bank appears to be closely eyeing the companies that are allegedly operating “beyond the scope of the enterprise and the market.”

The central bank also is intending to check the licenses of the Bitcoin enterprises. Moreover, the officials are planning to examine whether the companies are authorized to carry out credit, payment, exchange and other regulated affairs.

However, market experts believe that there is one worrying aspect of these so-called ‘raids.’ They say that the PBOC is planning to find out who is manipulating the market, reportedly. Moreover, online reports state that the compliance with anti-money laundering system execution and financial security risks are also on the agenda of the central bank.

BTCC obeys regulatory law

Bitcoin exchange, BTCC, has commented on the Chinese central bank investigation plans:

“The afternoon of January 11, 2017, the Shanghai headquarters of the People’s Bank of China, Shanghai Finance Office and other units to carry out an on-site inspection of Bitcoin China.
At present Bitcoin China is running normally, is actively cooperating with the regulatory department of inspection, and in accordance with laws and regulations to provide information, if received specific guidance, we will notify the user the first time.”

Moreover, BTCC has stated that Bitcoin China pledges that they will comply with all the relevant laws and regulatory frameworks. Also, the exchange representatives stated that it will as usual sustain Bitcoin market stability and protect the interests of investors.

In addition to abovementioned, the earlier online reports stated that there are increasing worries that China will tighten the Bitcoin regulatory environment. Apparently, Chinese officials are planning to increase pressure on Bitcoin firms to limit the output. The QQ.com has reportedly stated:

“The People’s Bank of China’s Shanghai branch said in a statement late Friday that its officials, along with the city’s financial office, asked Bitcoin trading platform BTCChina.com to conduct self-checks and rectify any problems. The State Administration of Foreign Exchange has scrutinized some major bitcoin exchanges, possibly to investigate the use of the digital asset to evade capital controls.”

Is it a follow-up or start of fundamental changes?

The market observers state it is possible to treat the planned inspection by the PBOC as a follow-up action after the central bank has called several Bitcoin firms. These include BTCChina.com, OKCoin, and Huobi.

Additionally, the experts believe that Chinese Renminbi has been broadly under pressure. The Chinese authorities have been fighting the capital flight. However, it is still not clear whether the recent moves by PBOC is a follow-up of the warnings against the abovementioned firms or if the central bank thinks of more fundamental changes for the Bitcoin in China.

Think we missed something? Let us know in the comments section below.

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