BTC China moved to reassure clients in an open letter that it has not received any notice from the People’s Bank of China (PBOC) about an impending crackdown. However, they did not outright deny the possibility of such developments:
“We’ve been tracking this issue. Whether it is local banks, Beijing’s central bank level, media channels and industry peers, we are paying close attention and keeping in contact. If we have any updates, we will immediately inform you.”
In an interview on Bloomberg TV last month, BTC China’s Bobby Lee downplayed the threat posed by the PBOC, and even suggested that it’s easier to set up an exchange in China than in the U.S., which may require the involvement of multiple bodies at the federal and state levels.
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A potential crackdown has been in the rumor mill for several days and has caused the price of Bitcoin and its crypto peers to decline sharply. The rumors were partially confirmed by OKCoin and FXBTC halting services. However, China’s largest exchange according to reported volume, Huobi, has said that they have not gotten any notice.
Markets remain on edge with Bitcoin prices hanging in the balance as traders wait for more concrete developments out of China. Bitcoin is currently trading near $455 after hitting a low of $417 on Bitstamp last week.
BTC China is China’s second largest Bitcoin exchange by volume, allowing trading with yuan in Bitcoin (BTC) and Litecoin (LTC) and BTC-LTC trading.