The People's Bank of China (PBoC) should continue monitoring domestic bitcoin exchanges, Zhou Xuedong, director of the PBoC's Business Administration unit, said recently.
Local news source Sina reported that Xuedong has called for the creation of blacklists against exchanges that do not comply with central bank directives. He has also suggested that the central bank should consider long-term regulatory mechanism to maintain financial stability.
Xuedong reportedly stated (as translated by CoinDesk):
"There is a significant risk, one is the risk of customer funds security, the second is the risk of money laundering, the third is the risk of leveraged transactions.
Xuedong reportedly also recommended the central bank to undertake an “observation period”, while establishing “bottom lines” which bitcoin exchanges must adhere. He also emphasized on the need to study the digital currency and its attributes.
The PBoC has been ramping up efforts to ensure regulatory compliance by domestic bitcoin exchanges since the beginning of 2017. The central bank officials met with the representatives of leading bitcoin exchanges. Soon after the meeting, BTCC, Huobi and OKCoin decided to implement fee-based trading.
