OKCoin Joins Calls for Bitcoin Regulation in China

Following similar comments by fellow bitcoin exchange BTCC, OKCoin indicated today that it is open to increased oversight from the Chinese government or central bank.

In statements, CEO Star Xu said that rumors that the People's Bank of China may enact a "third-party platform" to improve exchange security are based on real discussions, but that this dialogue remains theoretical and in its early stages.

Xu noted that the idea would enhance consumer protection by using techniques already in practice at stock exchanges and in peer-to-peer FinTech platforms.

"This was simply an idea suggested for discussion and to continue dialogue on enhancing consumer protection and fostering healthy, long-term growth of the industry," he said.

Echoing statements

made by BTCC CEO Bobby Lee, Xu also expressed his hope that the dialogue, and the increased public awareness of it, could improve the regulatory environment for bitcoin and digital currencies.

Xu said:

"The industry can benefit from balanced, risk-based regulation and oversight and we look forward to further constructive discussions with the regulators and industry participants."

Data from Bitcoinity indicates OKCoin is currently the second-largest bitcoin exchange for CNY bitcoin trading, trailing only BTCC in seven-day volumes.

According to CoinDesk Research, China-based trading accounted for 95% of all bitcoin volumes in the third quarter of 2016.

China/law image via Shutterstock