China State TV: OTC Bitcoin Platforms May Violate Law

China’s crypto exchanges may be violating financial regulations by facilitating peer-to-peer trading between Chinese yuan and cryptocurrencies.

At least that’s according to commentators on China Central Television (CCTV), who, in a segment that aired on its Financial Channel this week, discussed the volatility of bitcoin and its recent rally above $10,000.

Citing a notable growth of China’s OTC trading as one possible reason behind the surge, the program went on to raise concerns about the practice. As an illustration, a screen capture of Huobi Pro’s website was shown to viewers that demonstrated the peer-to-peer trading and step-by-step guidance for new users.

Yet, in interpreting the statement from the People’s Bank of China in September on banning initial coin offerings (ICOs), financial columnist and a TV personality Li Cangyu went so far as to state the the feature tries to bypass law enforcement and violates the specific rule whereby the PBoC prohibited any exchange from facilitating the trading between cryptocurrency and fiat currency.

Another commentator, Wan Zhe, a chief economic from China National Gold Group Corp., a central state-owned company that manages gold mining in the country, also echoed Li’s opinion…

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