Bank warns investors against Bitcoin trading platform

The People's Bank of China's Shanghai head office has warned investors in Bitcoin, a virtual currency, against using one of China's major Bitcoin trading platforms.

The bank said that the Shanghai-based platform BTBC has allegedly been operating businesses outside of its approved scope, financing investors against regulations, and failing to put investors' funds into third-party depository as required.

PBOC authorities have visited several Bitcoin trading platforms last week to do on-site check if they are complying.

The authorities focused on whether these platforms have been operating within their approved business scope, manipulating the market, implementing anti-money laundry practices, and safely managing investors' funds.

PBOC found that Bitcoin is not compliant, and should not be regarded and used as a currency in circulation.

The bank warned investors they should be on high alert about their funds' safety.

Contact the writer at wuyiyao@chinadaily.com.cn