During the last couple of years, China hasn’t had a very welcoming attitude towards bitcoin and other digital currency, given the fall in value of the Chinese yuan and the government’s attempts to limit capital leaving the country.
Because of this aspect, a while ago, most of the digital currency exchanges operating in China have halted their digital currency exchange operation, after a direct order from the Chinese government. Recent news from the Asian country predict that the service will be restored to most exchanges next month, which would be great news for both the Chinese and the international bitcoin trading market.
The People’s Bank of China directed some criteria that exchanges would have to follow, in order to regain their right to facilitate digital currency exchange services. Withdrawals of already-stored bitcoin and other currencies will likely begin next month, as exchanges fulfil various governmental decisions, on the subjects of management guidelines, AML guidelines and more.
At this moment, it remains unclear whether allowing bitcoin exchanges to operate once again in China will have an impact on the price, but it’s worth mentioning that during this time of absence, China is no longer the world’s leading market of digital currencies, as it was shortly overtaken by Japan.
Recent reports also indicate that some exchanges operating in the country, including OkCoin, BTCC and Huobi, which are basically the biggest, will have to pay big financial penalties, for not properly adhering to the AML guidelines given by the PBoC.
Based on everything that has been outlined so far, what do you personally think about exchanges resuming their service in China? Let us know your thoughts in the comment section below.
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