BTC China has, after 3 successful months, has decided to resume trading fees. For a few weeks now, because of 0% trading fees, BTC China has consistently been the highest volume BTC exchange. Trading fees will be 0.3%, the announcement reads:
Dear BTC China valued customer: To stabilize the recent turbulent Bitcoin market and minimize potential market manipulation, BTC China will end the 0% trading fee promotion, effective immediately, and revert to the 0.3% trading fee. We deeply apologize for the sudden change. BTC China, December 16, 2013
It was just on September 24, 2013 that BTC China announced that they were eliminating trading fees. In the few short months between then and now, BTC China has surpassed Mt. Gox as the number one Bitcoin exchange by volume. Bitcoiners have noticed that the BTC/Yuan currency pair, yes I called it a currency pair, has led the recent run-up to $1,000 and the subsequent volatility. It also doesn’t require much imagination to understand that 0% trading fees, which was emulated by other smaller exchanges to stay competitive, greatly reduces the cost of market manipulation. Now that BTC China is resuming trading fees, the arguments of those whom say Bitcoin’s exchange rate has been propped up by a select few have a lot less economic weight.
Since the People’s Bank of China “banned” real-life merchants and banks from handling Bitcoin, Baidu’s Jiasule has stopped accepting Bitcoin and some argued that Bitcoin’s first Chinese bubble had popped. Some may have noticed that BTC China requires ID or Passport Number now for all its users as well, this is another side effect of China’s bank’s statement. Whether or not BTC China maintains their lead as top Bitcoin Exchange will remain to be seen, their volume would remain consistently high if they added Litecoin or Primecoin though, even with the trading fees
This post was last modified (EST) on 17/12/2017 04:44