Chinese bitcoin exchanges are required to adopt more rigorous AML standards following recent directives from the PBOC. As a result, BitKan, a Shenzhen digital currency marketplace, has temporarily suspended new registrations until they align their AML rules with the new regulation.
BitKan, which supports a variety of currency such as Yuan, US Dollars and Rubles, is among the less sizeable players on the Chinese bitcoin market. The exchange is putting in place 72-hour restrictions on OTC trading for new accounts only that will not affect existing users. In addition, it will be reinforcing its anti-fraud procedures.
Implementing the new PBOC guidelines already demands from bitcoin platforms to make significant changes, which will likely result in service delays. At least the amendments are justified in the light of a more transparent and legitimate digital currency marketplace. This positive development goes hand in hand with inevitable setbacks for bitcoin companies as well as the cryptocurrency community.
The new regulation does not apply to peer-to-peer trading platforms, which has boosted business for players such as LocalBitcoins who do not store user funds directly.