Chinese bitcoin exchanges are forced to make quite a few changes right now. The recent talk with the PBOC unveiled exchanges need to incorporate stricter AML rules. BitKan, one of the smaller exchanges in the country, will halt new registrations while they upgrade their AML checks. A rather intriguing decision that will force even more traders to resort to peer-to-peer trading platforms.
BitKan is a bitcoin marketplace based in Shenzhen, China. On the platform, bitcoin traders can exchange cryptocurrency against various national currencies. The platform supports the Yuan, Rubles, and US Dollars, among others. With the new PBOC requirements when it comes to AML precautions, BitKan is forced to shut down their new user registration form.
BitKan Takes New AML Requirements Very Seriously
Moreover, everyone who registered on February 13, 2017, will not be able to conduct any OTC trades for the next 72 hours. All of these new accounts will be thoroughly vetted before they can make any bitcoin-related trade. Anyone who registered a BitKan account before that date will not be affected and can use the platform as they always have. It is interesting to see the exchange take this approach, which will likely cause the least friction among bitcoin enthusiasts.
Additionally, the platform will make amendments to its existing anti-fraud and AML procedures moving forward. It is expected these changes can take up to 30 days, which means there will be no new registrations until these matters have been addressed. BitKan staffers are hopeful the process will take less time than originally projected, though.
It is evident all Chinese bitcoin exchanges will adhere to the new PBOC guidelines. In most cases, that means a major overhaul of existing services, which explains the 30-day delays. Every platform has to succumb to these rules or risk getting shut down. In the end, all of these measures are taken to make bitcoin more legitimate in China, which is a positive development. Bringing bitcoin into the fold of “acceptable” payment methods will always be paired with some hurdles that need to be overcome.
While all of these platforms are making the necessary AML changes, LocalBitcoins continues to see a remarkable volume. Peer-to-peer trading platforms are not scrutinized by the PBOC at this time. LocalBitcoins does not hold user funds directly, which allows them to “elude” these AML requirements. Just last week, LocalBitcoins saw an all-time high record volume. Demand for bitcoin in China is not drying up by any means, that much is certain.