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Thursday, October 5, 2017

This is the Reason! Why 2 Top Market, OkCoin and Huobi, Dangerous for Bitcoin

OkCoin and Huobi announced they immediately suspended their digital currency withdrawal for a month after receiving referrals from the People's Bank of China to improve anti-money laundering (AML) systems. Because of the negative sentiment Bitcoin prices had fallen nine percent, Thursday, February 10, 2017, from the previous level of US $ 1,060 to US $ 959.

OkCoin and Huobi are suspected of keeping their customers from such negative sentiments to prevent a massive withdrawal by panic customers, so that later it will be difficult for companies to recover. "It's like when stocks stop trading to avoid a stock collapse," said Michael Vogel, CEO of Netcoins, as quoted from Cointelegraph, Thursday, February 10, 2017, or Friday time Indonesia.

Anti-Money Laundering Or Consumer Protection?

China's central bank policy is a bitter pill to be swallowed by two top-tier markets in the Bitcoin universe. However, according to Vogel, there is a more important aspect that the case draws a clear line between anti money laundering and consumer protection. Simon Dixon, CEO of, added that many regulators choose anti-money laundering rules at the expense of consumer protection.

Dixon said that to prevent money laundering practices, financial regulators require companies to keep confidential documents for customers, which puts consumers at risk of theft and exposes their identity to hackers or hackers. This policy is against consumer protection rules. "This is the form of the 'know your customer' system in the conventional financial system," said Dixon, asserting.

"Regulators often choose anti-money laundering rather than consumer protection and this case for example," Dixon said. "Customers can not access their funds because regulators have opted for anti-money laundering on consumer protection.If we only think about consumer protection, of course, it is a bad idea to prevent all consumer withdrawals but regulators do not take sides with customers in this regard."

Dixon explains the "catastrophe" that twists OkCoin and Huboi is just a small pebble of Bitcoin's long, brilliant story. But, he said, the pulse of Bitcoin's world trade did not stop with that risk, unless they chose to leave the battle arena.

Vogel himself expressed his surprise how these companies, OKCoin and Huobi, were able to keep this freezing policy a secret. "The clandestine act was fascinating, but it was finally discovered that some of their own employees made a massive withdrawal before the announcements came from the two companies."

Bitcoin Is Not a Stock

After equating the situation that hit OkCoin and Huobi like stock trading suspension to prevent stock collapse, Vogel noted that Bitcoin is not the same as a stock entity. The reason, the spirit of Bitcoin formation is that Bitcoin's circulation should not be controlled by third parties in any way, including the policies of the POBC.

Vogel concludes: "This is why transactions at ATM Bitcoin and individuals continue to grow to a record in the market despite being affected by the case of OkCoin and Huobi.I do not think there is a decrease in trading volume, that phenomenon will only transfer trade to Bitcoin ATMs to individual transactions. , Bitcoin prices will still soar. "

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