July 3, 2024
By Anjali Kochhar
China’s three main bitcoin exchanges, BTCC, Huobi, and OkCoin, stated on Sunday that they will start charging trading fees on Tuesday. The exchanges, which have come under heightened scrutiny from the People’s Bank of China (PBOC), announced that they will charge a fixed fee of 0.2 percent each transaction.
The decision to implement trading fees aims to “further curb market manipulation and extreme volatility,” according to statements on the exchanges’ websites. Previously, the absence of trading fees had driven high trading volumes and increased demand on Chinese bitcoin platforms.
Data from blockchain analysis firm Chainalysis, cited by The New York Times in late June, revealed that 42 percent of all bitcoin transactions in the first half of the year occurred on Chinese exchanges. The surge in bitcoin’s price to near-record highs at the beginning of this year has attracted significant attention from Chinese regulators.
The backdrop to this development includes the weakening of China’s yuan, which fell 6.6 percent against the dollar in 2016, marking its worst performance since 1994. In response to capital outflows and pressure on the yuan, the PBOC conducted spot checks on BTCC, Huobi, and OkCoin on January 11. These checks were part of the government’s broader effort to ensure compliance with financial regulations.
While the exchanges did not receive explicit directives from the PBOC, they introduced the trading fees in alignment with the central bank’s intent to stabilize the bitcoin market. A source familiar with the situation indicated that the exchanges took this step voluntarily.
On Monday morning, bitcoin’s price on the BTCC exchange dropped around 1 percent to 6,317 yuan, approximately $923. BTCC’s Chief Executive Bobby Lee mentioned last week that the exchanges had been discussing the introduction of trading fees.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
