China has taken strong steps to curb Bitcoin operations in the country. The government authorities undertook a series of investigations into the working Bitcoin exchanges in China. It found that several practices were in contravention to existing laws.

It is reported that the government has instituted ban on margin trading. Earlier this week, it was announced that the government had found BTCC guilty of extending illegal margin loans. However, the exchange denied any such occurrence.

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BTCC CEO Bobby Lee told Reuters that the exchange had already stopped offering margin loans last week. He also said that the exchange is operating normally. Lee said that the exchange is contemplating instituting trading fees. However, this step would require extensive deliberation with authorities.

Huobi and OKCoin told the South China Morning Post that they have stopped margin trading in Bitcoin. Shanghai based Paper.cn had reported that both these exchanges had failed to set up proper anti-money laundering systems. They were also reportedly providing margin funding to the customers.

The People's Bank of China had earlier stated that it had also found BTCC acting beyond the scope of business. it was also found providing shadow finance to its clients. The central bank had sent its teams to three major Bitcoin exchanges in the country on Wednesday

China is wary of the use of such cryptocurrency, which is believed to be aiding anonymous capital outflow from the country. It is reported that China accounted for more than 98 percent of the global Bitcoin trade in the past 30 days

Tagsbitcoin, BTCC, The People's Bank of China