China’s Financial Channel (CCTV-2) aired a special bitcoin documentary this week to analyze reasons behind the recent price rally. The program invited Li Cangyu, financial columnist and Wan Zhe, chief economist at China National Gold Group Corp. as commentators who believe that Huobi has undoubtedly violated regulations on cryptocurrency services.
Does Huobi Violate the Spirit of the PBOC’s Document?
Earlier this November, CCTV journalist reported that many OTC platforms don’t have any KYC requests, which leaves room for illegal activities. The latest documentary exclusively mentioned that Huobi and Huobi.pro have no legal base to provide RMB-related OTC services.
Log-in to Huobi and one can see that they still use RMB to measure bitcoin and altcoins. At the front page of Huobi.pro, there are a large banner reading “buy coins with RMB, three steps only” along with a detailed guidance teaching newbies how to register and trade with RMB.
Commentator Li Cangyu believes that this is obviously a breach of the PBOC’s notice. “The PBOC had made it clear this September that crypto platforms must not provide services between RMB and tokens, including price bidding or middleman service for the exchange of tokens or cryptocurrency,” he said. “I really don’t understand why they put that on their websites.”
When the program aired, many users dashed to Huobi.pro to either withdraw coins or cash out, worrying that the platform will be shut down again.