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China’s Central Bankto Further Tighten Bitcoin Regulations

China s Central Bankto Further Tighten Bitcoin Regulations

The People’s Bank of China has moved on to introduce a more stringent regulatory regime for cryptocurrency exchange platforms in the country. Bitcoin withdrawals from major cryptocurrency exchanges such as Huobi, OKCoin and BTCC have remained suspended despite the announcement they would have been re-enabled March 15.

According to media reports, the central bank has issued a directive introducing an even stricter identity verification process for digital currency traders. The document foresees the implementation of systems that will collect user information and report suspicious trading activities to the authorities.

Experts claim that this government policy aims to stop people from shunning capital controls and minimize the capital outflow in the form of Bitcoin.

The recent developments in China’s cryptocurrency ecosystem have caused the country to step down from its former leading position as the top Bitcoin market. Last month, the volume of the BTC/CNY pair plummeted from 97% of global trade volumes to anegligible 17%.

As of now, there are no indications that China will be able to overcome this debilitating state of limbo soon.