Advertisements

Recent Developments in China May Further Strengthen Bitcoin, Reduce Volatility

china-driving-the-bitcoin-wagon-with-bitmex-and-others-newsbtc-bitcoin-news


The recent developments in the Chinese Bitcoin sector forced many cryptocurrency exchanges to change their practices. These changes were put into effect after margin and leveraged bitcoin trading options came under the scanner of government agencies following huge reported losses among customers.


The price of Bitcoin, a popular cryptocurrency experienced a sudden fall earlier this month. The fall impacted investors across the world, but the ones in China suffered the most. Losses incurred by investors was due to the inability to log into their respective accounts and execute stop-loss trades on time. Upon receiving notifications about the investors’ plight, People’s Bank of China decided to inspect the Bitcoin platforms for unfair practices.


According to reports, the Chinese central bank had discussions with all leading Bitcoin exchanges and also issued a statement clarifying the stance of Bitcoin in country’s monetary system. The People’s Bank of China’s statement reiterated that Bitcoin is a virtual asset and not currency.


screen-shot-2017-01-14-at-10-42-14-pm-1024x534


 

Following the central bank’s inspections, few leading Chinese Bitcoin exchanges have made changes to their trade offering. Few platforms like Huobi & BTCC have completely stopped offering margin trading. OKCoin, another cryptocurrency exchange has reduced the leverage to 1x.


These new changes are expected to reduce Bitcoin trade volumes in the Chinese market, in turn reducing the dependency of Bitcoin price fluctuation on Chinese trading practices. All these factors will ultimately result in reduced volatility, which is a good thing for the cryptocurrency. The cryptocurrency platforms have reportedly suspended their existing loans and borrowing services for trading. The new developments follow the advice received from People’s Bank of China.


Contrary to earlier belief, the Chinese central bank is not cracking down on the digital currency. Instead, the authorities are attempting to implement measures to protect the interests of domestic investors. Continued effort on the central bank’s part will help China further strengthen its foothold in the Bitcoin, making it as good as any other currency for investment and transaction purposes.


Like this post? Tip me with bitcoin!

My Bitcoin adress below:
1EnwsN6VvJr5NqbDP6SZAMyryLVkEN8tWb

My litecoin adress:
LUCXD6QJQqQ2xTGQjgXmcWaZDtZJF5XaBS

My xapo adress:
davidjansen050@gmail.com

50ct-wallet-me

If you enjoyed reading this post, please consider tipping me using Bitcoin. Each post gets its own unique Bitcoin address so by tipping you’re not only making my continued efforts possible but telling me what you liked.

4 tips so far
o,oo45 BTC
Advertisements

Tags:

Categories: NEWS

Subscribe

Subscribe to our RSS feed and social profiles to receive updates.

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: