China`s Largest Bitcoin Exchanges To Charge Trading Fees

China`s Largest Bitcoin Exchanges To Charge Trading Fees

China`s three largest bitcoin exchanges have announced that they will start charging trading fees from 24th January on, as reported by Reuters (reuter

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China`s three largest bitcoin exchanges have announced that they will start charging trading fees from 24th January on, as reported by Reuters (reuters.com).

According to official statements on their websites, BTCC, Huobi and OkCoin will charge traders a flat fee of 0.2 percent for transaction.

Last week BTTC Chief Executive Bobby Lee, has given an interview to Reuters explaining that the three exchanges had talked about the possible introduction of trading fees.

“To further curb market manipulation and extreme volatility, BTCChina will start charging fees for bitcoin and litecoin trading from 12:00 p.m. (noon) UTC+8 on Tuesday, January 24th. Market makers and takers will both be charged a flat fee of 0.2 percent per transaction.”, said BTCC on their website btcc.com.

As this year started with a huge increase in bitcoin`s price, it attracted the attention of Chinese regulators. In 2016, China`s yuan currency dropped down with 6.6 percent as compared to the dollar, wrote Reuters.

In June, 2016, The New York Times quoted an analyses performed by Chainalysis, a provider of Anti-Money Laundering software for Bitcoin. It stated that China has become a huge market for Bitcoin, much bigger than other markets in the West. More specifically, Chinese exchanges have accounted for 42 percent of all Bitcoin transactions in 2016.

In January this year, the People`s Bank of China (PBOC) conducted spot checks on the three biggest bitcoin exchanges in the country, BTCC, Huobi and OkCoin. The goal was registering possible rule violations, as explained by Reuters.

Following the introduction of a trade fee in China, the price of bitcoin has been reported to decrease with 1 percent on the BTCC exchange to 6,317 yuan, equivalent to about $923, according to Reuters.

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