As China moves closer to Bitcoin regulation, the specifics of the People’s Bank of China Director Zhou Xuedong’s views on the cryptocurrency are coming to light.
In a translated summary of his findings uploaded to Twitter by cnLedger, Xuedong stated, among other items, that “most Bitcoin investors are young people” and that exchange behavior such as faking trading volumes “should be examined and regulated.”
Bitcoin’s future in China “cannot work out without regulations,” he said, speaking in the wake of the US refusal of the first Bitcoin ETF.
PBoC director's key points translated: pic.twitter.com/XAz9POYgza— cnLedger (@cnLedger) March 13, 2017
As China’s major exchanges continue preparations to fully recommence withdrawals in line with PBoC guidelines, the community is focused on what shape any regulation will likely take when officially outlined.
While Xuedong advised that a “forgiving attitude” would be adopted with regard to exchange regulation, it is likely that direct supervision of their operations will continue for some time to come.
“A certain level of regulations on Bitcoin trading platforms is indeed necessary,” he continued. “Without the regulations, bubbles will be amplified by speculation, so I suggest some red lines should not be crossed.”
Speculation elsewhere regarding the Chinese market continues meanwhile, with unconfirmed reports that authorities are considering banning P2P marketplace LocalBitcoins. The resource had formed an essential alternative for China’s traders when exchanges originally ceased allowing withdrawals in February.