BTC China weighs in on April 15 rumors

Last week, a report on China’s Caixin financial news service sent wave of panic through the Chinese bitcoin community. The report, which is still unconfirmed by any official source, claimed that the People’s Bank of China would be introducing harsh new banking rules for bitcoin-related businesses on April 15. Not surprisingly, rumors and speculation have been rampant since the story’s publication, helping to drive the price down to lows not seen since 2013.

One of the calmer voices in this rumor-filled tempest has been that of Bobby Lee, the CEO of major Chinese bitcoin exchange BTC China. Writing on the official BTC China Weibo account, Lee published an open letter claiming that neither his company or their banking partners had received any updates, official or informal, about changes to the banking rules since 2013.

Lee did note that China has played a major role in creating a bitcoin price bubble, driven by both poor understanding of virtual currency and weakening domestic investment options. With many Chinese exchanges banking on bitcoin as a speculative market, removing all transaction fees and competing for market share, it’s hardly surprising that their customers were quick to panic following rumors of a PBoC crackdown.

Although there is little BTC China can do before April 15, Lee noted in his letter that his company would take steps to further grow investor confidence. The company will subject itself to regular a third-party audits, becoming the first in China to demonstrate the validity of its transaction volumes. Additional steps, including forging closer relationships with regulators, upgrading the exchange platform’s software and creating a wider variety of bitcoin services, were also mentioned.