Confidential sources have reported that a private meeting is to be held Wednesday between China’s central bank and several domestic cryptocurrency exchanges. It is expected that the move will result in stricter control over digital currency trading.
Some of the leading bitcoin exchanges in the country including OkCoin, BTCC and Huobi were inspected by the regulator this January. The popularity of cryptocurrency in China has increased by 120% during the past year in an effort to protect investors from the depreciating yuan.
Following reports on the upcoming discussions, bitcoin prices dropped sharply. According to analysts, if the regulator goes on scrutinizing the matter, similar trends might be expected time and again.
Recently China has seen growth both in cryptocurrency trading and mining, stimulated by the search for alternative monetary resources, minimal exchange fees and cheap electricity.
It was only in January that the three largest bitcoin exchanges introduced transaction fees of 0.2%. As a result, cryptocurrency trading volume has been brought down.