Bitcoin regulation another two to three years: expert

It may be another two to three years before Bitcoin is regulated in China, says Bobby Lee, head of major bitcoin exchange BTCC.

Bitcoin has for a long time, been perceived to be an enabler for capital outflow in China given its soaring value and anonymity. 

Bobby’s comments come at a time when chinese capital outflow has been a particularly touchy subject - the most recent announcement coming from the Chinese currency regulator, imposing extra requirements for citizens to buy foreign exchange.

Bobby Lee - in his comments with Reuters, said while he and his company has not received any direct pressure on Bitcoin’s (and indirectly, his platform’s) perceived role in circumventing capital controls, Lee said he recently had a meeting with the Shanghai office of the People's Bank of China (PBOC), who came to better understand the platform and its operations.

In Beijing, the PBOC reportedly told two of China's other major bitcoin exchanges, not to mention the depreciating yuan when advertising their platforms.

However, according to Lee, while it is possible to buy bitcoin with yuan and exchange it with foreign currency - it’s generally not a viable option because of costs. Bitcoin is particularly expensive when buying with renminbi, he noted.

Lee says there wasn’t any new or planned rules regarding bitcoin discussed in his latest meeting, estimating it will be two to three years before China regulates bitcoin.

The price of bitcoin rose $8.62 on Tuesday, to US$908.53.

More news from this jurisdiction

Mainland ChinaMonday, Mar 20, 2017

Beijing’s effort to tighten capital controls has resulted in a 74 percent drop in Chinese outbound investment in the first quarter of this year and is likely to create serious problems for foreign businesses, risk consultancy Steve Vickers & Associates said.

Mainland ChinaMonday, Mar 06, 2017

The Ministry of Finance reported January lottery sales in Mainland China fell by 10.7 percent year on year, hurt by the timing of the Chinese New Year holiday.

Mainland ChinaThursday, Mar 02, 2017

Increasing outbound travelers from China is expected to provide strong demand for the Asian casino market, say analysts from Morningstar.

Mainland ChinaThursday, Feb 23, 2017

NY-listed 500 .com successfully narrowed its net loss in 16Q4 to RMB 5.7 million (US$0.8 million), compared to RMB 109.7 million in the prior year period.

Macau, Hong Kong, Mainland ChinaSunday, Feb 12, 2017

The bridge connecting Hong Kong, Zhuhai and Macau is expected to complete by the end of 2017, said Hong Kong’s Secretary for Transport and Housing.

Macau, Mainland ChinaThursday, Feb 09, 2017

Macau junket investor Iao Kun Group Holding Company says it will no longer look to expand its VIP gaming portfolio, instead focusing on investments outside the gaming sector.

Mainland ChinaThursday, Jan 26, 2017

Lottery service producer AGTech has announced it will be utilizing “certain channels and networks” of the Alibaba Group for the sales and distribution of its lottery products and services.