China Central Bank Denies Legitimacy of Bitcoins

November 25, 2013 Leave a comment

China Central Bank Denies Legitimacy of Bitcoins

11-22 10:25 Caijing

The U.S. Department of Justice and Securities and Exchange Commission both accepted the legitimacy of Bitcoins at a Monday’s hearing

China’s central bank has recently denied that Bitcoin, the growing popular virtual currency, is a legitimate financial instrument despite wide acceptance from U.S. regulators. Yi Gang, deputy governor of the People’s Bank of China(PBoC) made the remarks Thursday in the country’s first official response to surging popularity of the virtual currency in China over the last few weeks.Yi, however, said people have the freedom to participate in the Bitcoin market and acknowledged that he found Bitcoin characteristic and enlightening.

The U.S. Department of Justice and Securities and Exchange Commission both accepted the legitimacy of Bitcoins at a Monday’s hearing while Ben Bernanke, chairman of the Federal Reserve said he has no plans to regulate the currency.

“Although the Federal Reserve generally monitors developments in virtual currencies and other payments system innovations, it does not necessarily have authority to directly supervise or regulate these innovations or the entities that provide them to the market,” Bernanke wrote in a letter to the committee.

Daily trading volume at China’s three largest Bitcoin trading sites this month more than tripled from a month ago as prices rode on a roller coaster.

First traded publicly on April, 2010, Bitcoin went from $0.03 apiece then to over $900 three years later, accompanying with great volatilities.

Most investors stay on the sidelines as statistics from huobi.com, a Chinese Bitcoin trading site showed an increasing number of traders pulled their money out after prices stumbled from a record-high of over $1300 Monday in China.

Filed under Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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