Bitcoin Forum

The People's Bank of China (PBoC) is moving to more closely monitor (or otherwise engage) with domestic bitcoin exchange businesses.

Just days after it was revealed the PBoC's Beijing and Shanghai offices had visited the country's three largest exchanges by volume, the central bank said today that it is pledging to better engage with BTCC, Huobi and OKCoin through continued on-site inspections or meetings.

Discussed at new meetings, according to releases by its Beijing and Shanghai offices, were topics including compliance (anti-money laundering and foreign exchange management).

"The checks focused on whether the firm was operating out of its business scope, whether it was launching unauthorized financing, payment, forex business or other related businesses, whether it was involved in market manipulation, anti-money laundering or (carried) fund security risks," a translation provided by Reuters states.

BTCC CEO Bobby Lee confirmed the meeting to CoinDesk, stating that the PBoC requested data on its operations as well as recommendations on how the government might move to regulate bitcoin exchange operations.

However, Lee stressed that the on-site visitations are "very common" for businesses in China and continued to express an optimism about the engagement, which he framed as a long-delayed request from local businesses.

"We're now working closely with the government about what makes a healthy market," he said, adding:

"We've been trying to get their attention years."

Assessing the impact

Yet, the exchange also moved formally to stem the reaction to the news.

BTCC sought to discourage the speculation that has sometimes followed the PBoC's engagement with bitcoin businesses.

"We urge our customers to take a rational and cautious view to news articles which speculate on the visit and discussions," the exchange said.

Elsewhere, it seems the meetings continue to be limited to bitcoin exchange businesses, as companies using the protocol (Circle China) and over-the-counter trading facilities (Richfund) indicated they have not engaged with the PBoC.

Representatives from OKCoin and Huobi could not be reached at press time.

Continued on-site inspections doesn't send good vibes. The market could interpret that as constant surveillance and a sign that the PBOC might take further action. China won't be driving the next rally.

This is somehow ridiculous to see this happening when bitcoin reached +$1000
Also please indicate the coindesk's link in the bottom of your post

It probably was happening b4 but nobody cared to write about it...

Chinese governent was always aware of growing popularity of bitcoin in the mainland. Officials are not blind and know that Chinese miners dominate BTC mining.

It is unfortunate that recent price pump caused media attention and in the process Chinese government realized that money might be leaking though their borders in the form of BTC.

I am not surprised that bitcoin restrictions are being pushed further = more expensive bitcoin will create more regulations, laws, policies.

"We're now working closely with the government about what makes a healthy market," = we are kissing their asses and trying to look helpful and cooperative so they don't shut us down.
I understand them, the Chinese government is very strict and has the attitude of: you're either with us or against us. Money flowing out of the country makes them think BTC is against them, but the fact is BTC is not for or against, it's neutral and independent, and those are 2 things the Chinese government is afraid of.