"Requirements for the Cleanup and Rectification of Bitcoin Trading Platforms" was exposed, and insiders said the document was true

Recently, the WeChat public account "Lutoushe" exposed a document called "Requirements for Cleaning Up and Rectifying Bitcoin Trading Platforms" (hereinafter referred to as "Requirements"), which caused heated discussions in the community. An insider from a well-known trading platform confirmed to Babbitt that the document was true.

The requirements show that this round of cleanup and rectification of Bitcoin trading platforms will be led by local rectification offices and implemented jointly with local branches of the People's Bank of China, and other financial regulatory agencies or government departments will be invited to participate and support according to actual needs.

The requirements pointed out that the focus of the talks is that Bitcoin trading platforms must not violate the following eight requirements: 1. They must not engage in financing and currency lending business; 2. They must not recharge handling fees; 3. They must not participate in money laundering; 4. They must not violate relevant national foreign exchange management regulations; 5. They must not engage in payment business in violation of regulations; 6. They must not operate beyond the scope of business; 7. They must not violate legal provisions such as industrial and commercial advertising; 8. They must not violate securities and futures laws.

The requirements also put forward rectification suggestions for Bitcoin trading platforms, including but not limited to: stopping financing and currency lending business, charging transaction fees, suspending currency withdrawal services, establishing and improving relevant anti-money laundering systems, and conducting various businesses in accordance with laws and regulations.

In addition, the requirements also suggest that public opinion guidance should be done well during the cleanup and rectification process, and voices can be expressed through various means such as official website releases, media interviews, expert interpretations, etc., to release regulatory signals and guide social expectations.

Previously, according to the Wangdaizhijia report, on March 23, 2017, Pan Gongsheng, head of the Internet Finance Risk Special Rectification Leading Group (hereinafter referred to as the "Leading Group") and Deputy Governor of the People's Bank of China, presided over the third meeting of the Leading Group. The meeting reviewed and summarized the work progress of each member unit since the launch of the special rectification, and studied and clarified the follow-up work of the special rectification.

It is reported that the meeting reviewed and approved five topics, including "Notice on Further Improving the Special Rectification and Cleanup of Internet Financial Risks", "Notice on Carrying out the Cleanup and Rectification of Bitcoin Trading Platforms Nationwide", suggestions on the time arrangement of special rectification work, the next key tasks of each member unit of the leading group, and a list of studies on long-term mechanisms for Internet financial supervision.

This round of rectification of Bitcoin trading platforms has been underway for more than three months. In early January this year, the central bank interviewed Huobi and Bitcoin China, two major Bitcoin trading platforms in Beijing and Shanghai, and warned them of possible legal, policy and technical risks, requiring them to comply with laws and regulations in their business operations, conduct strict self-inspections and conduct corresponding rectifications in accordance with relevant laws and regulations.

On January 11, the Shanghai headquarters of the People's Bank of China and the Business Management Department of the People's Bank of China issued an announcement stating that they would conduct on-site inspections of the three major trading platforms in Beijing and Shanghai, focusing on whether the trading platforms are operating beyond their scope, whether they are conducting credit, payment, foreign exchange and other related businesses in violation of regulations, whether there is any market manipulation involved, the implementation of the anti-money laundering system and potential financial security risks, etc.

On January 18, Beijing News and CCTV News released the relevant inspection results released by the People's Bank of China Business Management Department and the People's Bank of China Shanghai Headquarters, which initially found that these Bitcoin trading platforms violated regulations in conducting margin trading and securities lending businesses, causing abnormal market fluctuations. In addition, these platforms have not established relevant anti-money laundering internal control systems in accordance with regulations.

On February 9, BTCChina, Huobi.com, and Bihang.com, three major Bitcoin trading platforms, issued an announcement stating that in order to further curb speculation in the Bitcoin market and prevent the possibility of illegal pyramid schemes, money laundering, and currency exchange through Bitcoin, they will suspend Bitcoin and Litecoin withdrawal services from that day on.

On March 8, the above three trading platforms issued an announcement announcing the postponement of the opening of the withdrawal business. They also stated that according to the requirements of the regulatory authorities and the relevant policy details, they will develop and upgrade the system, learn from global regulatory experience, and discuss with industry peers to formulate industry standards.

Attached is a photo of the "Requirements for Cleaning Up and Rectifying Bitcoin Trading Platforms":