The central bank takes comprehensive action! Shanghai and Beijing inspect Bitcoin Bitcoin "flash crash"

According to the Shanghai headquarters of the People's Bank of China and the Beijing Business Management Department of the People's Bank of China, on January 11, the inspection team of the People's Bank of China entered the Bitcoin and Litecoin trading platforms such as "Bitcoin China", "Huobi.com" and "Bihang" to conduct on-site inspections on the trading platforms' implementation of foreign exchange management, anti-money laundering and other relevant financial laws and regulations, and relevant regulations on trading venue management.

Influenced by this news, the price of Bitcoin plunged. The prices of the three major trading platforms, Bitcoin China, Huobi.com, and Bihang, all fell below 6,000 yuan, a drop of more than 5%. (The following market chart is from Huobi.com)

According to media reports, following the interview with the heads of the three major domestic bitcoin trading platforms on January 7, the regulatory authorities will continue to meet with industry insiders in the near future to discuss the establishment of a third-party bitcoin custody platform to ensure the security of bitcoin transactions. The regulatory authorities have noticed that during the recent drastic adjustment of the bitcoin market, some trading platforms were unable to log in, causing investors, especially leveraged investors, to suffer heavy losses.

On January 6, the Shanghai headquarters of the People's Bank of China announced that the bank, together with the Shanghai Financial Office and relevant regulatory authorities, met with the main person in charge of the Shanghai Bitcoin trading platform and emphasized that Bitcoin is a specific virtual commodity and cannot be used as currency. In addition, according to media reports, the central bank and its Shanghai headquarters met with three Bitcoin exchanges in Beijing and Shanghai respectively - Huobi, Bihang and Bitcoin China, asking them to conduct self-inspections on recent abnormal situations and carry out corresponding rectification.

At the same time, Tencent Finance learned from people close to the regulator that the State Administration of Foreign Exchange also investigated several major domestic Bitcoin trading platforms on January 6, perhaps to investigate recent behaviors such as transferring assets through Bitcoin to circumvent foreign exchange controls.