BTCChina, Huobi, OKCoin Face Administrative Punishment in China
The People’s Bank of China is reportedly preparing to issue major exchanges with an administrative “punishment.”
Flagship Chinese Bitcoin exchanges are set to face “administrative punishments” over flouting regulatory norms in the past.
A report by local resource Caixin, summarized by cnLedger, states the People’s Bank of China (PBoC) will shortly issue the document to BTCChina, OKCoin and Huobi.
Details of what the so-called Notice of Administrative Punishment will require remain “unknown” cnLedger says.
1/ Caixin News: PBoC will soon issue "Notice of Administrative Punishment" to OKCoin, Huobi & BTCChina (details unknown) pic.twitter.com/dsP7rkXb0c— cnLedger (@cnLedger) May 10, 2017
The report added that the long-awaited hard-and-fast regulations governing cryptocurrency exchanges in China are due next month.
“Official regulation details on bitcoin trading platforms and bitcoin AML standards still under work, may be released in June,” cnLedger explained on Twitter on Wednesday.
Last month, Chinese exchanges were expected to resume withdrawals after a freeze which has extended since February.
The PBoC had previously highlighted aspects of the market it deemed contrary to best practices but said it would adopt a “forgiving attitude” to extant exchanges.
This decision is reflected in the handing down of an administrative, rather than criminal, penalty.
“An ‘Administrative Punishment Notice’ is issued by Gov depts to those who did not break laws, but violated certain rules or regulations,” cnLedger clarified in a further tweet.
Meanwhile, despite the continued withdrawal freeze, the price of Bitcoin in China has surpassed 10,000 yuan.