Two of China's Largest Bitcoin Exchange, OKCoin and Huobi, Suspend Margin Trading at the Request of PBoC Regulators

OKCoin.cn, the largest Chinese bitcoin marketplace by volume, according to data from CoinMarketCap.com, announced today that all margin trading is being suspended. OKCoin said the decision to halt lending facilities came at the request of PBoC regulators.

Furthermore, existing margin positions will be wound down gradually, “Users with loans that have already taken place will not be asked to forcibly repay the debt. After voluntarily repaying previous loans, users will not be able to apply for new loans,” writes OKCoin.

According to some traders on OKCoin, the leverage cap applies only to spot markets, with futures leverage remaining at 20x.

And OKCoin wasn’t the only Chinese bitcoin exchange to halt leveraged trading today. Huobi, the third largest bitcoin trading venue in China, released a statement on Chinese microblogging platform Weibo, saying PBoC regulators have asked for the stopping of all leveraged trading.



While BTCC, the second largest Chinese exchange, suspended bitcoin margin loan trading last Friday, the exchange’s Twitter timeline is full of tweets denouncing speculative theories and news articles:

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1 comment :

  1. This seems like a sensible requirement given the extreme volatility of Bitcoin, and the fact that certain individuals have sufficient possession of Bitcoin to significantly and artificially drive significant price fluctuation in the market. Market trading using the high margins on offer magnify this effect. Given the extent to which Bitcoin is also hyped as an investment with no rationale other than ever expanding "upward" waves that are "bound to happen because..." then from a financial security market point of view, it is only sensible to discourage too much emphasis on gains and more on "buyer beware."
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