Bitcoin platform investigation is still ongoing and quantitative funds are beginning to withdraw

The reporter learned yesterday that the central bank's investigation into bitcoin trading platforms is still ongoing, and the potential impact of the investigation is gradually fermenting. At present, many well-known trading platforms have suspended their "financing and currency lending" business. At the same time, the once popular bitcoin financial products have also been gradually removed from the shelves. A bitcoin high-frequency quantitative institution has begun to withdraw from the trading platform and is holding on to its coins to wait and see the announcement of the final results of the central bank's investigation.

Financing, currency lending and financial management businesses are gradually closed

On Wednesday, relevant personnel from the central bank revealed the preliminary results of an investigation into a number of bitcoin trading platforms, believing that a certain trading platform had problems such as operating beyond the scope of its business, conducting margin trading business in violation of regulations, and failing to implement third-party custody of investor funds.

The reporter learned that many well-known platforms under investigation have currently closed their financing and currency lending businesses. This is also what the central bank said was illegal financing business. However, the staff of many platforms have not officially learned of the central bank's statement.

According to the reporter, margin trading and coin lending are basically the same as margin trading and securities lending in the stock market. Among them, coin lending is similar to securities lending, that is, "shorting". Platform companies can support customers to increase leverage and make profits through financing and coin lending, and charge fees at the same time.

"Unlike the previous practice of the central bank to disclose the progress of interviews and investigations on its website, we did not see any relevant authoritative information this time, but only learned about the progress from the media. However, the financing and currency lending business has indeed stopped." A relevant person in charge of a well-known platform told reporters.

However, the person in charge was unwilling to disclose further information, only saying that everything was subject to the information disclosed by the central bank.

Some websites have also stated that their Bitcoin financial management business will also be closed in the near future. A well-known website stated that in accordance with the regulatory requirements of the People's Bank of China, the China Securities Regulatory Commission, the Ministry of Public Security and other departments, after consultation with various departments, it will stop the RMB and Bitcoin financial management system at the end of this month and will no longer accept any RMB and Bitcoin financial management business.

"From the information currently conveyed by various platforms and websites, various Bitcoin derivative services are subject to great constraints. Financing and currency lending are an investment method that Bitcoin players value more, and can achieve two-way profits. After the current suspension of trading, there will be a certain impact on trading volume." said a senior person in the blockchain field.

Trading platform revenues hit

The reporter learned that the central bank's investigation is still ongoing, and there is no clear timetable for its end. However, the recent developments have had a certain impact on the entire market, and the most direct impact is on the revenue of trading platforms.

"Unlike overseas Bitcoin trading platforms, mainland China generally implements a zero commission system. Therefore, it generally tends to charge through value-added services, such as financing and currency lending. Therefore, this will severely damage the platform's revenue." The above-mentioned senior person in the blockchain field said.

Many market participants currently expect that Bitcoin trading platforms will charge for transactions. However, several Bitcoin players told reporters that the probability of charging is not high, otherwise they will change trading platforms.

"It is just the beginning now, and the future results of the investigation are still unpredictable. To avoid risks, we have begun to withdraw funds." The head of a quantitative trading company revealed. In the opinion of the head, the biggest advantage of Bitcoin quantitative trading is that there is no handling fee, and various investment strategies can be implemented. If a fee is charged, it will affect the benefits of quantitative trading.

"Last year, the general monthly profit was 3%, but once fees were charged, this level of profit became basically horrible," said the person in charge.

In addition, what makes him even more headache is that when cashing out the profits from the Bitcoin trading platform, a withdrawal fee is also charged. "Generally speaking, VIPs or customers with a transaction amount of more than 80 million will be charged 0.03%, while ordinary customers will be charged 0.05," a platform staff member told reporters.

Although the central bank has not officially released the results of the survey, once the trading platform increases the transaction commission, the impact on quantitative trading is self-evident. Statistics show that among the current domestic Bitcoin trading platforms, nearly 80% come from quantitative high-frequency trading. The proportion of quantitative trading on the three major platforms is generally around 60%. Therefore, the sentiment of temporarily avoiding risks is heating up.

Today, respondents are looking forward to the final results of the central bank's investigation, which will allow investors to have a clear expectation of market development. At that time, the charging situation of each platform will also affect investors' returns.

"We are still optimistic about the future development of Bitcoin. We believe that the market will become more standardized after this rectification." said a person from a Bitcoin trading platform.