The People’s Bank of China released an official statement today regarding their recent probes of Chinese based cryptocurrency exchanges. The inspections resulted in the exchanges discontinuing their leveraged trading on CNY trading assets, as well as the introduction of trading fees to make up for lost volume the extra leverage provided.
Check out and read the official statement below (translated into English).
Recently, the People’s Bank Business Management Department and the Beijing Municipal Bureau of Finance, the Municipal Industry and Commerce Bureau and other relevant departments of the Joint Inspection Unit stationed in the “fire network”, “currency line” and other bitcoin currency trading platforms for on-site inspection. According to the initial inspection and the problems found, the inspection group decided to continue to focus on payment and settlement, anti-money laundering, foreign exchange management, information, and financial security and other aspects of further inspection. Investigators suggested that investors should pay attention to bitcoin platform transactions, such as legal compliance, market volatility, financial security and other risks, careful participation in bitcoin investment activities.