Two of the china’s leading traders who use the most popular bitcoin exchange, not only in china but the entire world, now stopped the bitcoin withdrawals when met with an warning last week.
Ultimately, the crackdown on margin lending may end up being a long-term positive, as it will prevent the tremendous momentum shifts that have sent volatility in the digital currency soaring.
For some Chinese traders the crackdown on margin lending comes just a few days too late. Last week it was observed that the most of the wealth in china’s bitcoin market crashed sending price hike by forty percent.
While China’s relation with rapidly moving bitcoin may come and go, this incident merely reinforces a long-running observation for traders seeking a way to get rich and retire, forget fundamentals and technical analysis between the lines of central bankers
So both OKCoin and Huobi made clear that their services now will upgrade to Combat Money laundering, exchange, pyramid schemes and other illegal activities, despite failing to provide any further details.
BTCC have said to CoinDesk that changes to the exchange’s service were being made in response to interactions with the people’s bank of China, the country’s central bank, though they stopped short of saying that the service had been terminated or disabled.
In note provided to one reputed agency, Huobi indicated that the move was an aggressive one that found the two exchanges seeking to promote Bitcoin.
Hopefully, therefore, the withdrawal of margins and futures offerings is only temporarily, but the move does raise concerns that PBOC’s involvement will be far more extensively than previously thought.