Bitcoin’s price fell by more than $100 in minutes around 9 A.M. London time as the People’s Bank of China announced they have opened an “inspection” on BTC China, Huobi and OKCoin, which in combination account for 90% of bitcoin trading volume.
According to Reuters:
“The probe of bitcoin exchanges, including BTCC, Huobi and OKCoin, was to look into a range of possible rule violations, including market manipulation, money laundering and unauthorized financing, the People’s Bank of China (PBOC) said. It did not say if any violations had been found.”
Huobi has been criticized for going “offline” during fast price movements, preventing traders from reacting. For years now there have been speculations that both OKCoin and Huobi fake their volumes. All three exchanges are unregulated. BTCC publicly stated:
“A group of regulators consisting of the SH branch of PBOC, the SH Financial Affairs office other related govt agencies visited BTCC. During this visit, we followed up on prior discussions and shared details about our business model and operations with the group. We expect to