Chinese Have Reached Closing Rules Of Bitcoin
After a close game between the PBOC and Chinese bitcoin exchanges, its financial regulator, and the central bank, some clarity is looking to emerge.
Past week, the Director of the PBOC’s Business Administration Unit Zhou Xuedong reports to the local media by stating that the regulator will look to adopting a forgiving attitude towards the local bitcoin exchanges presently and they are looking for the establishment of an observation period. It will give them some duration for giving time to guarantee they are complimenting with the financial regulations.
The violations are specified by the PBOC that will make an exchange to become blacklisted. However, the majority of the criteria is related to the present regulations, others specifically related to the bitcoin btc. They consist:
- Providing leverage and margin trades
- Trading volumes are inflated artificially as they do not charge any fees on bitcoin trades.
- Anti-money laundering or foreign exchange law violation.
- Wrong advertising and participation in the Ponzi schemes.
- Providing securities, credit and futures trading without having an appropriate license.
The PBOC begins to offer clarity on what includes an infringement is first to move toward a clearer regulatory environment. After that, there will be an implementation of an official regulatory framework for the bitcoin exchanges.
The Blockchain technology famous for powering the bitcoin and other cryptocurrencies has gained steam among the finance companies due to its potential for streamlining processes and increasing the efficiency. By 2022, the technology can reduce the costs by nearly $20 billion every year as per Santander.
Operating as a distributed ledger, the blockchain has the power for allowing the multiple parties for transferring and storing the sensitive information in a space that’s anonymous, permanent, easily accessible. It can simplify expensive, logistically and paper-heavy, complicated financial systems, such as cross-border transfer, remittances, and securities trading one of them.
The potential of technology can be investigated by the governments and the music industry for simplifying the recordkeeping.