Chinese Bitcoin Exchange BTCC Halts Leveraged Trading as PBoC Inspections Continue

Following the surprise inspections of China’s largest bitcoin exchanges (BTCC, Huobi, OKCoin) by financial regulators from the PBoC over the last few days, which sent the price of the digital currency plunging to $720, BTCC has announced the suspension of all margin trading & lending until further notice:

In an interview with Chinese fintech news outlet, CEO of BTCC, Bobby Lee, explained that all Chinese digital currency trading venues operate in the “grey areas” of Chinese financial regulation.

Lee also said inspectors from the PBoC showed great interest in the inner workings of BTCC during their onsite inspection, “PBoC also asked BTCC to prepare a report on the details of the exchange operations,” he adds.

Other major Chinese exchanges have also hinted at limiting leveraged bitcoin trading. Huobi, the third largest bitcoin exchange by volume on China, said leveraged trading may be limited if market conditions warrant it:

OKCoin, the largest Chinese exchange by volume, has also temporarily reduced leveraged trading to 1x, according to 8btc.