China's Central Bank Confirms Plans to Release New Bitcoin Regulations in June
Yicai Global
/SOURCE : Yicai
China's Central Bank Confirms Plans to Release New Bitcoin Regulations in June

(Yicai Global) May 16 -- The value of a bitcoin soared 267 percent on the year to CNY12,450 (USD1,805) on Sunday, state-owned broadcaster CCTV reported on May 14 as China's central bank looks to further regulate the digital currency.

Media reports previously suggested that People's Bank of China would introduce a new wave of regulations to be released in June, which the central bank has now confirmed to be true.

Through disciplinary interviews with major Chinese bitcoin trading platforms and on-site inspections, the central found that illegal financial operations carried out by the platforms had led to abnormal fluctuations in the cryptocurrency's value, it said.

PBOC is working on two sets of administrative measures to tackle the issue and hopes to issue them in June, the statement added. One set will be for bitcoin platforms while the other aims to crack down on money laundering via the platforms.

The central bank met with a number of bitcoin trading platforms as early as January, which prompted most to restrict withdrawals of the cryptocurrency and prevent Chinese residents using the platforms to exchange their yuan for other currencies. In China, citizens are restricted to exchanging the equivalent to USD50,000 worth of yuan per year, but savvy bitcoin users were able to buy the digital tender with their yuan and then sell it on in foreign currencies.

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Keywords: Bitcoin , Pboc