China’s National Radio Questions Legality of OKEx’s Bitcoin Future Trading
New media reports state that China National Radio (CNR), a high-level government mouthpiece, is raising questions about the legality of offered services by OKEx, the Hong Kong-based cryptocurrency exchange launched by OKCoin.
CNR, made an alleged report that OKEx disregarded rules and standards by offering bitcoin contracts trading to mainland Chinese investors after the firm made an announcement that it was going to take its business abroad, this report was made through its podcast channel “Voice of China” on Thursday and later an article named “Exchanges that still prevail after the ban.”
According to the reporter, Yang and Zhang are alleged investors who had used OKEx’s services, claiming that the firm’s bitcoin contracts trading is essentially betting on unregulated bitcoin futures with the option to add leverage to increase returns and risk.
The article went on criticizing OKEx for clearly evading directions by enrolling itself in Belize while having its central station situated in Hong Kong, an exceptional regulatory locale outside of China’s purview.
Besides citing its own investigations, the station stated that OKEx’s innovative improvement is still overseen by the OKCoin group situated in Beijing. Meanwhile, CNR said the trade has kept on offering over-the-counter (OTC) exchanges that make buying and selling cryptocurrency accessible for investors from central China.
On Wednesday, CNR published an article written by the same team, taking aim at ICOs that are still offering tokens to Chinese financial investors even after the eminent prohibition on fund-raising token sales by the People’s Bank of China last year.
“Citing a former employee of a cryptocurrency project named PROChain, the station specifically alleged the firm, the team of which is mostly China-based, violated regulations by selling tokens to domestic investors without providing substantial technological blockchain development.” Cited Coindesk.
Neither PROChain nor OKexhase yet reacted to CoinDesk’s solicitations for input.
