China Could Soon Introduce Third-Party Custodian Service for Bitcoin Sector

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The Chinese government and financial authorities are known for being over protective about their economy. Soon, the same protectionism could be extended to the country’s Bitcoin markets as well.

There are reports on Chinese media outlets about the possible implementation of third-party custodian services for Bitcoin. The new development is a result of recent fluctuations in the world’s largest cryptocurrency market following the price surge.

An article on one of the leading Chinese dailies has quoted a China Securities Journal official saying,

“Regulators have noticed that some bitcoin platforms crashed during the recent market volatilities, causing some investors, particularly those trading with leverage tools, to bear huge losses because they were unable to log on to the website during the sell-off.”

The issue described by the official is a common problem faced on many platforms. However, these minor issues can blow up into major ones, causing losses in terms of thousands if not millions of dollars due to Bitcoin’s highly volatile nature. The implementation of third-party custodian platforms for the Bitcoin market will considerably improve trading security. If the custodian service is offered by government-backed banking and financial institutions, then the trust in Bitcoin among individuals could also increase, leading

Read more ... source: NewsBTC USA

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