BitKan, a Shenzhen-based bitcoin marketplace where traders can trade the digital currency amongst each other for different national currencies like Russian rubles, Chinese yuan and US dollars, has announced new rules to come into full compliance with financial regulations in China.
According to the announcement, newly registered traders (traders who registered on February 13, 2017) will not be able to conduct OTC trading for a period of 72 hours. Existing clients will not be affected by the new rule.
BitKan also temporarily disabled new registrations and said new upgrades to its anti-fraud and anti-money laundering prevention procedures may take up to one month. However, BitKan mentioned the new changed may also be finished much sooner.
A rough English translation of BitKan’s statement reads:
“BitKan will be strictly in accordance with relevant state laws and regulations to effectively prevent and combat the use of coins for money-laundering, foreign exchange, pyramid schemes and other illicit acts.”BitKan is the latest bitcoin trading venue to succumb to pressure from financial regulators at the People’s Bank of China.
Chinese bitcoiners began to turn to online digital currency marketplaces like LocalBitcoins, which is very similar to BitKan, after many of the big Chinese exchanges stopped withdrawals last week to draw up stricter fraud-prevention checks.
LocalBitcoins, the most popular online marketplace of its kind, saw a big surge in activity in China last week.
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