New rules for bitcoin-exchanges in China!

Caixin electronic edition writes that the investigations of the exchange ecosystem conducted by the People's Bank of China (PBoC) have been completed, and the rules governing the activities of bitcoin exchanges should be submitted to the public in June.

According to statements made earlier by the head of the business management department of PBoC Xedong Zhou, the regulators are likely to prohibit the exchanges from providing margin trading and debt trading services. He also said that the exchanges should not increase the volume of trading by eliminating transaction fees.

Chinese regulators are also discussing possible provisions on initial coin offerings, or ICO, according to a review of the report written by Yao Qian, director of the Digital Currency Research Department at PBoC.

He wrote in May:

"Although the government takes a tough stance towards Bitcoin, we should in some ways give odds to the companies that conduct the ICO. You need to give people the opportunity to invest in these companies. It's better than buying some stocks that are actually nothing more than rubbish. "

In the same survey, he suggested that Chinese regulators accelerate the development of legislation for ICO and use the sandbox model.