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The China’s central bank has recently been meeting nine of Chinese’s smaller cryptocurrency exchanges to review its rules and regulations to further apprehend any incoming risks and problems in the fast-paced growing Bitcoin market and published a report of a possible closure if illegal matter and serious violation are uncovered.

The People’s Bank of China has published its article that one of the meeting’s agenda with the 9 cryptocurrency exchanges is to not divulge themselves in any financial activities such as margin lending or allow money laundering. The PBOC is eagerly looking for flaws and possible breaches of the country’s rules. Beijing has been on the move to speed up the efforts to stem capital outflows and relieve pressure on its currency.

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Bitcoin Drops after POBC Meeting

The nine exchanges involved in the recent meeting were CHBTC, BtcTrade, HaoBTC, Yunbi, Yuanbao, BTC100, Jubi, BitBays, and Dahonghuo, according to the PBOC. Some news revealed the most of the exchanges allows other cryptocurrencies to be traded on their platform beside Bitcoin. The PBOC increasing security and inspections in the first months of the year has led to the introduction of trading fees and stop margin lending. Bitcoin falls a total of 3% after the news of the meeting erupted, but gaining a couple of grounds and recovering 1.9 percent, trading at 7,545 yuan as Thursday’s trading started.

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Yuan Recorded Worst Performance Since 94

The Chinese currency was remarkably low last Tuesday, the yuan fell to a total of 6.6 percent against the dollar last year, the worst annual drop the currency experience since 1994. The decline led both trading companies and investors wandering for a better currency to invest. According to data reported by the PBOC earlier this week, China’s FX reserves has fall decrease $3 trillion for the first time in six years last January. The Chinese FX reserves fell as much as $320 billion last year following 2015’s $523 billion declines.

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PBOC Previous Bitcoin Scene

A similar scenario happened on January 11 as the PBOC reminded the likes of OKCoin and Huobi to remain to abide by the country’s laws and regulation regarding financial activities, this made the price of Bitcoin plummet to the $916 range to as low as &761. The sudden decrease was due to panic selling which emanated from the fear of on-site inspection may imperil investments in the popular digital currency. The potential ban and imminent danger for cryptocurrency-related activities when it comes to China; the country is seen to be the hive of Bitcoin operation tallying a total 90% of the world’s cryptocurrency activities, operations, and holdings.

Bitcoins prices have doubled last 2016, analysts are reporting a potential comeback even with the monthly threat the Chinese government pose. Chinese local are investing on Bitcoin to help preserve the value of their asset causing a sharp decline in the value of the yuan. 

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