Following recent efforts by the People’s Bank of China to ensure regulatory compliance by domestic bitcoin exchanges, PBoC director Zhou Xuedong has issued a statement saying that a certain level of regulations on these platforms are necessary.

According to a translated summary by cnLedger, Xuedong noted the recent rejection of bitcoin ETF by the SEC. He also stated that ‘some platforms faked a lot of volume in order to attract investment.’

Earlier this month, Xuedong called for the creation of blacklists against exchanges that do not comply with central bank directives, as reported by local news source Sina. He has also suggested that the central bank should consider long-term regulatory mechanism to maintain financial stability.

In January 2017, the central bank urged domestic bitcoin exchanges to ensure regulatory complaince. The PBoC officials met with the representatives of leading bitcoin exchanges.  Soon after the meeting, BTCC, Huobi and OKCoin decided to implement fee-based trading.