Bitcoin China Tumbles After PBOC Finds Platform “Violations”
Bitcoin prices in China had fallen last week after the PBOC began to investigate platforms and now, as Beijing News reports, margin trading and short selling violations were found at Bitcoin exchanges OkCoin and Huobi.com after preliminary inspections, according to PBOC officials.
Violations were also found at the BTCC online bitcoin exchange, including unauthorized businesses and illegal margin funding, Shanghai Securities News says on cnstock.com, citing officials at the PBOC Shanghai branch.
The reaction – for now – is muted, but all three major Chinese Bitcoin exchanges are seeing prices fall…
Perhaps indicating more controls to come, officials noted “these bitcoin trading platform financing irregularities are leading to abnormal market volatility. In addition, these platforms are not required to establish anti-money laundering internal control system.”