Popular Tags


People’s Bank of China starts checks on Altcoin exchanges

At a time when the People’s Bank of China (PBC) has not yet finished its checks applied on local Bitcoin exchanges, activists are advising to pay attention to cases of money laundering through altcoins. It is likely that the PBC will question a compliance with imposed requirements with respect to Altcoin exchanges.

It should be reminded that a administration unit of the PBC found a number of irregularities in the work of three largest cryptocurrency exchanges of the country – BTCC, Huobi and OKCoin in January 2017.

According to an inspection report, the Central Bank found that the exchanges had carried out transactions and violated existing anti-money laundering legislation. As a result, all three exchanges were forced to cancel a margin trading and change a policy of trading commissions.

How is it going with exchanges other cryptocurrencies? There are currently three major Altcoin exchanges in China, which have been working since 2013 – BTC38, Yuanbao and Jubi. And, unlike their larger coounterparts, they have been subjected to hacking (or its reenactment) more than once. A cryptocurrency exchange BTER reported a theft of 50 million NXT (about $1,65 million) during an attack on one of its servers in August 2014. 7170 BTC were stolen in February 2015, as a result of which the exchange experienced losses it could not recover and lost a significant proportion of clients.

BTC38 was also hacked in 2016 and lost 1.5 million RMB worth of coins (10 million Bitshares, over 10 million NXT and some BTC and LTC).

Due to a possible attention of the regulator, the Yuanbao exchange in Beijing decided to modernize the user authentication policy. As of January 7, 2017, you need to upload a personal photograph or download a special application (Taiyi Creditid) to gain access.

It’s worth noting that BTC38 allows 0 transaction fee for enterprise accounts, Yuanbao has 0.2-0.3% transaction fee while Jubi follows 0-0.1% fee policy.

In addition to the above, there are other Altcoin exchanges in China (Yunbi, Bichuang, etc.). Probably, the PBC will inspect them after it takes cares of most major players.


  • February 10, 2017 12:34 PM MSK