BTCC chief executive is almost certain that the regulation of the digital currency bitcoin is coming in a few years. Such conclusion was made by the head of BTCC after the open meetings between the People’s Bank of China and the top-tier bitcoin exchanges. Despite being interested in the capital outflows through the Bitcoin, the PBOC did not demand the BTCC to examine how much money was taken out of the country.
The CEO of BTCC, named Bobby Lee, had an interview with Reuters. Lee informed that his company did not undergo any kind of pressure by the PBOC. Additionally, BTCC did not receive any request to limit the Chinese capital outflow through the cryptocurrency. At least not for now.
As reported by Bitcasino.io, BTCC was not the only major exchange that the PBOC met on January 6. Apart from BTCC, Chinese Central Bank had the meeting with Huobi and OKCoin. Although nothing truly remarkable happened during the meeting, PBOC emphasized the importance of analyzing the anomalous bitcoin price fluctuations. We should remind that the digital currency was on a roller coaster ride before the PBOC warning. The price of bitcoin climbed to its highest level for several years but it took just some time for it to fall sharply.
The PBOC worried about Bitcoin?
It is quite strange for the PBOC to be concerned much about Bitcoin, if taking into account the size of China’s foreign exchange reserves. The net value of all bitcoins on the blockchain is $24,5 billion, provided that we calculate using the all-time high of $1163.
Currently bitcoin is actively being sold at a premium price in yuan, thanks to the enhanced demand for this digital currency. Mr. Lee, however, does not any sense in buying this cryptocurrency with yuan for further selling it abroad. He also states that few investors tried to use bitcoin with an aim to avoid the capital caps.
Too early for the Regulation
Bitcoin will be regulated, but any rules applied to bitcoin are unlikely to appear in the nearest future. Bobby Lee thinks that it may take 2-3 years until China considers wielding its authority of the financial regulator to start controlling bitcoin within the country. On its behalf, BTCC seeks for the ways to remain the most sustainable bitcoin exchange. That is why BTCC regularly holds the meetings with the People’s Bank of China to show that the exchange complies with China’s legislation.