Stellar Lumens (XLM) Forum with for newcomers and contributor's rewarded Check here




Chinese Bitcoin Exchanges Accused of Misappropriating Client Funds
  • 16 Vote(s) - 2.5 Average
  • 1
  • 2
  • 3
  • 4
  • 5

#1
[Image: Chinese-Bitcoin-Exchanges-Accused-of-Mis...8x1068.png]
Leading Chinese bitcoin exchanges have been accused of using client funds for the purposes of making high-risk investments. Chinese state media outlet, Xinhua, first reported the allegations that Chinese bitcoin exchanges have been diverting customer funds toward private “wealth management products”.


Also Read: A Brief Glimpse Into the Lives of Chinese Bitcoin Miners

Chinese State Media Has Alleged That Chinese Bitcoin Exchanges Have Collectively Invested Approximately $1B Yuan ($150M USD) Into “Wealth-Management Products”
[img=300x0]https://news.bitcoin.com/wp-content/uploads/2017/08/Huobi_Logo_2016-300x300.jpg[/img]
Leading Chinese exchanges have been accused of using customer funds to make high-risk private investments, Xinhua has reported. Xinhua alleges that Huobi and Okcoin collectively invested approximately 1b yuan ($150 m USD) into “wealth-management products”, citing recent investigations made into the activities of cryptocurrency exchanges by the People’s Bank of China.
Okcoin has issued a statement refuting the allegations, stating “we at OKCoin have a strict policy of placing idle client funds into lower-risk banking products. This policy is in keeping with general practices in the banking and securities industry, for both the purpose of safeguarding clients funds.” Huobi is yet to issue a statement regarding the allegations.
Xinhua has since published an editorial piece advocating for greater government regulation in the face of increasing dynamism within the cryptocurrency sphere. “New things are developing so fast that regulations must keep pace,” Xinhuan states, before expounding that authorities go to greater lengths to shut down bitcoin exchanges suspected of “dubious” operations.

Ascertaining the Validity of Xinhua’s Claims Has Become Difficult Due to the Absence of Further Documentation Supporting the Allegations
 
[img=300x0]https://news.bitcoin.com/wp-content/uploads/2017/08/shutterstock_500383135-300x200.jpg[/img]
Ascertaining the validity of Xinhua’s claims has become difficult due to the absence of further documentation supporting the allegations. Western media has been unable to access a key People’s Bank of China report cited in the article, and further details regarding the investment products that hosted clients funds are unavailable.
Quartz has reported that Beijing-based bitcoin exchange employees have revealed that cryptocurrency exchanges have become subject to increasing regulatory scrutiny following the People’s Bank of China’s crackdown on leading cryptocurrency exchanges, included mandatory reporting to China’s central bank.

Do you think that the major Chinese bitcoin exchanges are likely to have been engaging in high-risk investments using client funds? Share your thoughts in the comments section below!
Click==>Best E-Money Exchanger<<==Click
Reply
#2
I do not trust any Chinese market and try to avoid them
Reply


Possibly Related Threads...
Thread Author Replies Views Last Post
  Grayscale Reveals Blockbuster Q3. So Why Is Bitcoin Stuck? crytocure 0 7 1 hour ago
Last Post: crytocure
  Bitcoin Price: Which Countries Have the Biggest Premiums? crytocure 0 45 14-10-2019, 01:00 PM
Last Post: crytocure
  How to Use an Inverted Chart to Remove Bitcoin Bias crytocure 0 22 13-10-2019, 03:23 PM
Last Post: crytocure
  With Only 12,000 Bitcoin Millionaires, What is The Potential to Be One? crytocure 0 29 12-10-2019, 11:42 AM
Last Post: crytocure
  Why Bitcoin? Part 7: The Separation Of Money And State crytocure 0 25 12-10-2019, 03:02 AM
Last Post: crytocure
  BITCOIN MINERS DROVE PRICE VOLATILITY IN 2018 BEAR MARKET, SAYS NEW DATA crytocure 0 22 12-10-2019, 02:48 AM
Last Post: crytocure
  Decentralized Exchanges Are Evolving at Last crytocure 0 26 10-10-2019, 10:38 AM
Last Post: crytocure
  Vitalik Buterin Thinks Proof of Stake Will Make Ethereum Safer than Bitcoin crytocure 0 20 10-10-2019, 10:28 AM
Last Post: crytocure
  Global Elites vs Bitcoin: 3 Reasons Why World Powerhouses are Waging War on BTC crytocure 0 24 09-10-2019, 11:05 AM
Last Post: crytocure
  2 Bitcoin Developers Explain How The Cryptocurrency Could Still Fail crytocure 0 25 09-10-2019, 10:54 AM
Last Post: crytocure



Users browsing this thread: 1 Guest(s)