A Regulatory Storm Is Forming in China: Video Verifications Required, Futures Forbidden – Featured Bitcoin News


A Regulatory Storm Is Forming in China: Video Verifications Required, Futures Forbidden

Some new revelations have been coming from China concerning the recent bitcoin exchange policies within the region. The leading exchange BTCC has revealed it will be offering zero fees for USD/BTC trades for one month. Meanwhile, Chinese exchanges are beginning to lift withdrawal suspensions but are asking for further customer identification.

Related: The Butterfly Effect of Bitcoin’s Exchange Regulations

BTCC Initiates Zero Fees for USD/BTC Trading While New Verification Processes Affect Chinese Traders

Throughout the new year, the People’s Bank of China (PBOC) have been enforcing new regulatory rules across the Chinese bitcoin exchange industry. China’s top exchanges have added fees to trades, removed future options, and a few exchanges suspended BTC withdrawals. Just recently BTCC has announced its USD bitcoin exchange promotion offering zero fees until March 31. The company’s move may be a reaction to try and stimulate more trading as BTCChina trades will still implement fees.

A Regulatory Storm Is Forming in China: Video Verifications Required, Futures Forbidden

Furthermore, a source from the region tells Bitcoin.com that new rules have been applied for certain Chinese exchange withdrawals. It seems some exchanges are allowing withdrawals with no official announcements. Our correspondent also explains that withdrawing from BTCC now requires ID card and video verification. He explains to our readers his experience trying to withdraw from BTCC stating:

Once the picture ID verification passes, BTCC further asks you for a video verification. Guess, I won’t do that today. The last withdraw I made from there, required no such verifications at all.

PBOC Cracks Down on All Types of Futures Trading Across the Country

The central bank’s regulatory pressure may not be entirely focused on bitcoin trading. The PBOC has also issued warnings to other types of exchanges that utilize future options and margin lending practices. This past January a meeting with provincial government leaders took place in Beijing to clean up these types of trading practices over the course of six months. Bitcoin exchanges are not mentioned in the latest warning but targets companies that exchange futures on oil, collectible stamps, precious metals and more. The news seems to be correlated as the PBOC is cracking down on these types of trades and bitcoin exchanges in China have stopped futures and lending practices.

Meanwhile, as bitcoin exchanges change their rules traders in China are flocking to new avenues like Localbitcoins, and OTC markets like Richfund. Both Paxful and Localbitcoin’s volumes in China have reached an all-time high this past February. As far as the other regional bitcoin exchanges are concerned trading volumes have nosedived significantly. Furthermore, while all eyes continue to focus on events in China, bitcoin trading in Japan takes the lead in volume globally.

What do you think about the recent developments taking place in China? Let us know in the comments below.

Images courtesy of Shutterstock and Twitter. 

Tags in this story
Bitcoin, BTCC, China, Exchanges, Futures, ID Verification, LocalBitcoins, OTC Markets, Paxful, PBOC, Richfund

Do you want to talk about bitcoin in a comfortable (and censorship-free) environment? Check out the Bitcoin.com Forums — all the big players in Bitcoin have posted there, and we welcome all opinions.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Show comments