BTCC Founder Bobby Lee Says Cryptocurrencies Need Regulation

This week Bobby Lee, founder and CEO of the China-based bitcoin exchange BTCC, warned that cryptocurrencies should be regulated or they will “run amok from society.” The conversation follows the recently introduced bitcoin-related regulatory policies administered by China’s central bank.

Also read: Chinese Congresswoman: ‘PBOC Should be Responsible for Bitcoin AML’

‘Regulations Needed for the New Asset Class’

BTCC Founder Bobby Lee Says Cryptocurrencies Need Regulation
Bobby Lee, CEO of the Chinese Bitcoin exchange BTCC.

Since January the People’s Bank of China (PBOC) has been enforcing strict rules towards bitcoin trading platforms in the country. The central bank worked with the top three Chinese bitcoin exchanges Okcoin, Huobi, and BTCC to establish new AML/KYC regulatory requirements. This included the ending of margin trading and zero-fee trades, alongside video identification requirements and the possibility of onsite verification for opening an exchange account. This week Bobby Lee, CEO of exchange BTCC, told CNBC’s broadcast “Squawk Box” that if cryptocurrencies are not regulated, things might get out of hand.

“I think regulation is much needed for this new asset class because otherwise, it’ll run amok from society,” explains Lee. “But the challenge is how to craft the rules around this new technology.”

“I think it’s taking the lawmakers and regulators some time to wrap their minds around it, and to come up with the appropriate rules and laws to govern companies, how we do business, to govern individuals and how people conduct business online.”

ICO’s and Capital Outflow

BTCC Founder Bobby Lee Says Cryptocurrencies Need RegulationLee’s statements are in the midst of the recent Initial Coin Offering (ICO) craze taking place in China and worldwide. China’s financial regulators have been concerned about token sales and believe statutes should be framed to protect investors. The news outlet Yicai Global just published an interview with Sheng Songcheng, a PBOC executive who said the government should draft regulatory standards like “information disclosure requirements.” Further, some believe the PBOC is also trying to curb capital outflows that may be tied to digital assets by cracking down on cryptocurrency businesses. However, Lee doesn’t believe that theory.             

“It’s not really a crackdown — The central bank previously was not very aware of the details of how bitcoin is utilized, how bitcoin is traded,” says Lee.

There was a causation and correlation issue. People thought bitcoin was causing it — but after studying it more, I think the central bank has realized that bitcoin is not the cause of the change in exchange rate, nor is it the cause of the capital outflows.

The Central Bank’s Should Pay Attention

There’s still a lot more ground to cover as far as cryptocurrency regulation in China is concerned, and the country’s bureaucrats are well aware of the tasks they face. Many members of the central bank and government leaders are taking steps to understand the decentralized currency better, alongside rumors of building a renminbi-backed cryptocurrency as well. BTCC’s Bobby Lee believes the PBOC needs to pay more attention to cryptocurrencies so they can understand what they are regulating.

“It’s a new thing the central banks should pay attention to and figure out what the rules and regulations should be,” Lee concludes.

What do you think about Bobby Lee’s statements about cryptocurrency regulation? Let us know in the comments below.

Images via Shutterstock, Pixabay, and BTCC. 

Why not keep track of the price with one of’s widget services.

  • David Arulnathan

    you mean…cryptocurrencies should be regulated….so you can catch the guys taking the money out of China for a better life elsewhere!!

  • Roger Ver

    Interesting that so many of the Blockstream / Core / Small block supporters are so supportive of government intervention in people’s affairs, and some of them even have offices in Washington D.C. and hired people previously working for the White House.

  • Viper_ZA

    Hope they get the “love” they deserve…

  • Brian Keim

    Central Banks doing the ‘regulating’! Central banks fund wars, Sponsor terrorism, commit financial terrorism and they want to ‘regulate’! ALL Central Banks need to collapse!!! Pull all your money out of these CONS

    • Enrique Hoyos

      Right, because before central banks existed and when the gold standard was in use there was no war and the world was a peaceful and prosper place. NOT! Regulation is coming for BItcoin, and cryptos, like it or not. Long overdue. People need to pay taxes, and governments need to function. Libertarian economic policies are a pipedream that can’t and will never work.

      • Chad Guest

        Are you serious! inflation of the money supply has caused the destructive wars.. we don’t need banks and we definitely don’t need government.. wake up buddy

        • Enrique Hoyos

          What inflation? Developed countries are on borderline deflation with stagnant salaries. Just ask Japan how cool deflation is. Sure, we dont government. We just need a few conspiracy theorists, Alex Jones, the wild west and we will be just fine.

      • Karl B. Hensel

        Yea lets rob the American peoples Social Security fund of trillions to finance a bullshit, made up war so Halliburton can be awarded a non compete contract and charge us whatever they want for shit! Did not see a damn thing on Bush, Obama budget on repaying Social Security. Both parties screw us and keep us fighting. If we have to go black market in order to have a chance at a descent life. So be it!

        • Enrique Hoyos

          Agreed on everything, except that the central banks are to blame for this. Lack of regulation, low taxes for the wealthy and the military industrial complex are to blame for this. Mark my words, cryptos are going to be regulated and when they do, they will regulate the crap out of them. Just look at China. No government will let this slip out of their hands.

      • Karl B. Hensel

        No people don’t need to pay taxes. They are forced to! You need air,water,food,shelter.

        • Enrique Hoyos

          Then go to Amazonas with the indians and live there. Over there you will only have air, water food and shelter. The price for living in a civilized society with roads, bridges, airports, schools, etc, are taxes. True libertarian societies are in Africa where governments are completely irrelevant. Look how well that has worked for them.

  • William Wanklyn

    IMO Central Banks are the ones needing regulation, like, regulated out of existence. Fractional reserve banking and debt money are the real problem.

  • “But the challenge is how to craft the rules around this new technology.”
    I don’t know about that, -you see people will make rules if it fits their purpose …Bitcoin’s rules as far as i am concerned is made up. Also if you start governing bitcoin it becomes worthless…we can just as well make the USD crypto!

  • “BTCC Founder Bobby Lee Says Cryptocurrencies Need Regulation” but nearly everyone knows that GOVERMENTS need even more regulation or they will “run amok from society.” to an even greater extent!

  • There is no good reason I can think of that a well established business would ever be crying for government to regulate them or their customers. None, nada, zip. I mean really, is Bobby Lee that incompetent or unscrupulous or something to where he thinks he needs somebody else to tell him what to do? Maybe somebody else can come up with a good reason. Anybody?

  • Liberty88

    The world’s central banks are out of control and they think Bitcoin needs regulated…..

    If you can’t regulate what you already have you damn sure aren’t going to be able to regulate Bitcoin.

    It’s just laughable – these people have rocks in their head.

    Hey Bob – run an honorable exchange and you won’t have a problem. What do you think about that, Bob?