Largest Bitcoin Exchange BTC China Seeks Regulation

As demand and the sheer trade volume of bitcoin continue to rise, BTC China, the world’s largest bitcoin exchange, discussed with regulators the possibility of recognizing the digital currency that would enable it to be actually spent in China for goods and services.

Bloomberg reports that BTC China had sought to discuss the next regulatory steps with officials from the People’s Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission.

BTC China CEO Bobby Lee has said that “They’ll ask us ‘how should you be regulated,’ and I’ll say ‘Hey, here’s what we’ve done proactively and here’s how we think you should regulate us.” Lee believes that in terms of regulation, bitcoin is in the “gray area.”

The regulatory openness of China was hinted at when Yi Gang, the deputy central bank governor, was quoted by 21^st Century Business Herald stating, “This is very different from six months ago when I was very much unsure of Chinese opinion.”

Last month, the U.S. Senate had a committee to discuss the current state of bitcoin, and to feel out the regulatory actions, if any, that the government would need to carry out.

It would be reasonable to say that Chinese regulators would have to ask many of the same questions of these bitcoin exchanges and businesses, especially as more of China’s wealth gets moved into bitcoin. The digital currency is particularly attractive because of its decentralized nature, and its viability as a tax-free investment vehicle. Whether rising interest is due to confidence in bitcoin or the lack thereof in the Yen, is debatable.