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BTCC considers trading fees with margin lending suspended

BTCC considers trading fees with margin lending suspended

It was last week when we learned that the major Chinese bitcoin exchanges shut down their margin lending and leveraged trading for users. As such, it was revealed from BTCC that they are now considering implementing commissions on trading.

While not illegal as no decree was issued during the probing from the People’s Bank of China (PBoC) on visits to the major exchanges last week, it’s understood that combined with increased pressure from regulators and the recent volatility in bitcoin due to Chinese yuan policy, the exchanges have indeed indefinitely halted margin for whatever reason.

According to reports from Reuters, CEO of BTCC Bobby Lee, late this week denied media reports that the central bank had ruled it was offering margin loans illegally, and he affirmed the platform is operating normally.

However, as noted above Mr. Lee did say the company had stopped offering margin alongside competitors OKCoin and Huobi, after “discussions” with the PBoC.

“No one has said that margin trading for bitcoin is illegal,” Mr. Lee told Reuters.

He continued:

“The media reports were not based on any official documentation. So as far as I’m concerned, at this moment, we have not received any official documentation, verbal or written feedback from the PBoC with regards to their conversations with us over the last two weeks.”

On the implementation of trading charges, BTCC put out the following statement on Friday, January 20th:

BTCChina ceased offering margin loan services as a result of the recent extreme volatility in bitcoin price. To curb market manipulation and reduce market volatility, BTCChina is also considering charging trading fees, as is the case with other bitcoin exchanges. We will keep customers informed of any changes.

So if the issue of margin trading on crypto exchanges can’t be resolved, one wonders how this will effect BTCC’s plans to ramp up activity on their institutionally focused ‘Pro’ exchanges. The company recently revamped their BTC/USD Pro exchange platform in order to diversify company volume away from BTC/CNY.

An interesting chart from Twitter user WillyWoo, who provides commentary during the week on the markets, showed the impact of volume on Chinese exchanges since the PBoC probes, you can check it out below:

Source:BTCC

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