|   Digital Currency


  |   Digital Currency


PBoC urges bitcoin exchanges to ensure regulatory compliance

The recent spike in bitcoin price has brought it under the scanner of the People’s Bank of China, which recently issued a fresh notice to caution users when engaging in bitcoin-related activities.

According to the notice, the officials from the PBoC, together with the Shanghai Financial Office, met the representatives from leading bitcoin exchange BTC China.

“Urged the platform to behave in accordance with relevant laws and regulations. And perform self-examination and carry out some measures if necessary,” the notice reads, as translated by CryptoCoinsNews.

In addition to BTCC, representatives from OKCoin and Huobi were also in attendance, CoinDesk reported. The central bank’s notice seems to be a reminder for people who may be considering investing in the digital currency following the recent surge in its price.

“Bitcoin is a specific virtual goods, does not have the same legal status with the currency, can not and should not be used as money in the market circulation. Participating institutions and individuals should carefully engage in activities such as Bitcoin investment and bear the corresponding responsibilities and risks”, the bank said (loosely translated).

BTCC issued a statement on the PBoC’s notice, which stated:

“BTCC regularly meets with the People’s Bank of China and we work closely with them to ensure that we are operating in accordance with the laws and regulations of China.

As the longest running exchange in the world, we have always adhered to strict AML/KYC policies and continue to be compliant with all current regulations in China.

The press release put forth from the PBOC today outlines that there is significant volatility in bitcoin trading, and also quoted from a notice released in 2013 saying that bitcoin is a virtual good and doesn’t have legal tender status.

All of our users should be aware of the current policies on virtual goods as well as the risks involved in trading in volatile markets.”

Following the PBoC’s notice, Bitcoin price slumped to $812 levels on December 07 on Bitstamp. It is currently trading at $894 levels at press time.

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