Bitcoin regulation in China: a new boost?
In June new regulations on money laundering in Bitcoin Exchanges are to enter into force in China. What can these mean for Bitcoin?
Caixin, a Chinese magazine on various topics in the financial sector, has outlined the next steps regarding bitcoin regulation, which the People’s Bank of China (PBOC) wants to realize. These new rules, which will enter into force in June, concern bitcoin and altcoin exchanges. We have reported on this some time ago that the consequences are briefly summarized here.
Ultimately, this is about AML regulations, which are intended to prevent money laundering through trading activities. In the run-up to these new regulations, China’s Bitcoin Exchanges, including the “Big Three” OKCoin, BTCC and Huobi, were subjected to protracted investigations. Within the framework of this study, the extent to which these examinations against money laundering proceeded. The three major Exchanges have suspended payments during the investigations.
According to the People’s Bank of China, some deficiencies regarding the work of the three Exchanges were identified. These will also have negative consequences, the extent of this has not yet been decided. The Know Your Customer Policy has been drastically tightened on the part of the Chinese Exchanges in order to keep corresponding consequences down.
What the regulations of China can mean for Bitcoin
It is extremely interesting that in the last few weeks, investors have been spending a tremendous amount of money on bitcoin, despite the regulations that have been in force since January, which ban bitcoin funds. This has made China the second largest bitcoin market (after the United States).
Interesting: A reproach of different sides was that many Chinese wanted to transfer their money abroad. The continuing increase in Bitcoin’s investments, despite a ban on disbursements and an increase in the influx of anti-money laundering regulations, shows, however, that the Chinese are a medium to long-term investment.
In this regard, one can be curious about the development of the demand for bitcoin after the entry into force of the bitcoin regulations in China.
The Bitcoin News
You want the latest news about Crypto? Sign up to our weekly Newsletter!