Bitcoin trading volume drops on major Chinese Exchanges after transaction fees were reinstated. After many years of no-fee bitcoin trading, the major exchanges introduced a flat fee 0.2% per transaction. NEWSBTC reports:
The one-hour trading volumes across most major Chinese bitcoin exchanges took a big hit. Earlier tonight, OKCoin’s volume dropped by 89% compared to Monday. BTCC and Huobi were hit by similar declines. Interestingly enough, now that trading volume is drying up, the bitcoin price remains virtually unchanged. That is a positive sign for this otherwise volatile cryptocurrency, and a somewhat unexpected development. (Read the full article)
The fees were introduced in order to reduce potential pressure on the exchanges from PBOC officials. The first inspection of the major exchanges lead to voluntary elimination of margin trading. It is expected, that the attention of the Chinese government to bitcoin exchanges will grow and lead to new regulations and control of cryptocurrency.
BTCC co-founder and CEO Bobby Lee believes that China’s immensely popular cryptocurrency bitcoin will come under regulation in future.
The statement comes after People’s Bank of China (PBoC) launched an investigation in the aftermath of the immense price hike in bitcoin at the end of December 2016 and beginning of January 2017.
“The answer is, I don’t know when it will happen but I know it will happen. I have confidence of that because fundamentally I think bitcoin exchanges need to be regulated,” said Lee to Business Insider. (Read the full article)
There is no doubt that cryptocurrency will become regulated or illegal as the market capitalization grows beyond some level. Once the size of the market is large enough, it is virtually guaranteed, that the governments will impose regulations.