It appears the PBOC investigation of the Chinese Bitcoin exchange BTCC is coming up with some unexpected results.After cracking down on margin trading, it appears officials have found “hidden risks” related to the Bitcoin exchange operations. For the time being, it remains unclear if there is any truth to this story, yet it goes to show the investigation was direly needed.
Unconfirmed Rumors About BTCC’s Activities
According to unconfirmed sources, Bitcoin exchange BTCC has some hidden risks. Those are the alleged findings of the PBOC’s Shanghai Branch right now. Not too long ago, China’s central bank started looking into these Bitcoin exchanges to ensure nothing illegal or fishy was going on.Their first order of business was to curb margin trading and protect Bitcoin speculators from major financial harm due to cryptocurrency volatility.
It is anybody’s guess as to which “hidden risks” the Economic Information Daily is talking about, though. No further information was provided as to what could be unclear on BTCC‘s behalf, and whether or not this has any impact on platform users. It would not be the first time Chinese media outlets try to spread FUD about Bitcoin activity.
We do know the PBOC is taking a closer look at BTCC – and all other Chinese Bitcoin exchanges – to ensure all companies are operating within the boundaries of their licenses. An on-site inspection of the BTCC offices was carried out yesterday, yet no official sources have provided any findings to the rest of the world. There is no point in speculating what this unconfirmed news may mean at this stage until an official statement is provided.
Over the past week or so, Bitcoin volatility has come to a halt, and the price momentum has been within acceptable margins. In fact, it appears the wild price swings are over, and the Bitcoin price continues to recover in a positive manner. Slow and steady wins the race when it comes to attributing financial value to assets, and Bitcoin is no different in this regard.
One primary concern users of any Bitcoin exchange should have is whether or not the company is doing enough to ensure customer funds are protected at all times.It remains unclear if BTCC users run any risk in this regard, albeit it seems rather unlikely. The coming days will be quite interesting, and we will hopefully receive more information regarding this situation.
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