Chinese authorities hold talks with leading Bitcoin exchanges

People's Bank of China holds meetings behind closed doors with multiple exchanges for trading of digital currency Bitcoin, because of the growing concern that regulators may tighten control over the crypto-currency. The representatives of the People's Bank will meet on Wednesday afternoon with representatives of Bitcoin exchanges, and among the discussed topics will be money laundering.
The crypto-currency react with a sharp drop at the beginning of the year for the news that China may tighten rules for trade in Bitcoin to shrink the outflow of capital. In January there were checks on exchanges OkCoin, Huobi and BTCC, after last year Bitcoin rose by over 120%, as investors bought Bitcoin, as insurance against the depreciation of the yuan.
China has a key role on the Bitcoin market in recent years, as the Chinese customers have become the leading traders and miners of the crypto-currency. Their interest is due to the demand for alternative assets, the lack of fees for exchange and the low price of electricity required for computers that "mined" Bitcoin. Any increased control by the authorities, however, may put the Bitcoin under pressure on the Chinese markets.
The three largest Bitcoin exchanges in China have introduced transaction fee from 0.2% to prevent speculation and fluctuations in prices.
From early February the Bitcoin rose by 11% and recovered partially the loses from mid-January.
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