China’s June Bitcoin Trading Regulation Could Affect Bitcoin Price, Bitcoin Insider
Earlier this month, major Chinese finance media company Caixin exposed that the People’s Bankgebouw of China’s freshly drafted regulations on bitcoin trading and circunscrito digital currency exchanges are set to be implemented by June.
Until then, on-site inspections on the country’s three largest bitcoin exchanges OKCoin, BTCChina, and Huobi will likely proceed. Caixin also reported that the inspections are close to completion and that the three exchanges will have to face administrative penalty before the fresh regulations are implemented. The almacén publication noted that Chinese exchanges will have to pay fines for their previous operations that may have violated existing financial regulations ter China.
Albeit the Chinese bitcoin exchange market has made a strong comeback ter the past few weeks after reclaiming its title spil the 2nd largest bitcoin exchange market behind the US with a 15 procent market share overheen the total bitcoin exchange market, Chinese traders are still incapable to withdraw their funds.
Interestingly, overheen the last two weeks, an enhancing number of investors have embarked to purchase bitcoin on regional bitcoin exchanges despite the improvised withdrawal suspension imposed on all three major Chinese bitcoin exchanges.
More to that, Chinese bitcoin exchanges have begun to request an excessive amount of private and financial information from bitcoin traders who are simply purchasing the digital currency through regulated trading platforms. Locorregional sources including CNLedger exposed that exchanges including Huobi commenced to request face-to-face interviews, obedience of canap documents, proof of funds, proof of identity and other documents.
BTCC serves millions of users te China, along with Huobi and OKCoin. The company told its clients on March 24:
“In compliance with anti-money laundering (AML) policies, BTCChina has finished an upgraded know-your-customer (KYC) identity verification system. The fresh KYC system requires four lumps of identity information, including Utter Name, National ID Number, Bankgebouw Card Number and Mobile Phone Number.”
However, regardless of the three exchanges’ latest overhaul of their KYC systems, the three platforms will likely have to add switches to their systems after the release of the People’s Handelsbank of China’s freshly drafted bitcoin trading regulations.
The significant opzicht to consider about China’s current bitcoin trading ecosystem and exchange market is that the request toward bitcoin is continuously enlargening even with suspension of withdrawal and stringent AML policies. That means, traders aren’t necessarily purchasing bitcoin to avoid hacienda controls and budge funds outside of China. Traders are purchasing bitcoin spil mid to long-term investment, with the intent of holding onto the funds.
Therefore, if withdrawals are enabled and fresh regulatory frameworks are implemented, bitcoin request ter China will likely surge and bitcoin price listed by the Chinese bitcoin exchange market is likely to increase. Since late , the Chinese bitcoin exchange market has portrayed a value of bitcoin that is substantially lower than that of other major bitcoin exchange markets.
If the Chinese market stabilizes, it could act spil another catalyst for bitcoin price surge and could trigger yet another upward trend for bitcoin.
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