The People's Bank of China launched spot checks on bitcoin exchanges BTCC, Huobi and OKCoin, looking for rule violations including market manipulation, money laundering and unauthorised financing; it was not said whether any were identified. A Huobi executive, who declined to be named, confirmed the PBOC visited its office on Wednesday, but declined to provide details. Bitcoin's price has fallen by more than 20 per cent since the start of this year, but its value is still up about 30 per cent. Since the yuan lost more than 6.5% against the dollar last year some believe the soaring price of bitcoin has presented Chinese investors with the opportunity to hedge against the yuan and avoid forex limits.
The People's Bank of China launched spot checks on bitcoin exchanges BTCC, Huobi and OKCoin, looking for rule violations including market manipulation, money laundering and unauthorised financing; it was not said whether any were identified. Bitcoin's price has fallen by more than 20 per cent since the start of this year, but its value is still up about 30 per cent. Since the yuan lost more than 6.5% against the dollar last year some believe the soaring price of bitcoin has presented Chinese investors with the opportunity to hedge against the yuan and avoid forex limits.