CHENGDU, Jan.12 (NBD) -- The bitcoin market is repeating the history of 2013. On January 5, bitcoin price hit record high of 8895 yuan (1286.5 US dollars). However, it tumbled again after the PBOC launched inspections on bitcoin trading platforms.

People's Bank of China's (PBOC) Beijing and Shanghai branch announced yesterday that they would carry out inspections on bitcoin trading platforms to see whether they are operating under the regulations of China. Market speculators will be hunted down. Anti-money laundering system implementation and onsite inspections are also on the agenda.

As of 6:00 p.m. yesterday, bitcoin trade volumes on OKCoin, Bitcoin China and huobi.com reached 2.22 million yuan (321,100 US dollars), 1.49 million yuan (215,500 US dollars) and 1.18 million yuan (170,600 US dollars).

According to China Securities Journal, Chinese regulators will discuss with industry leaders on the establishment of a trusted third party to ensure the security of bitcoin trading. But sources denied this possibility. Deng Jianpeng, an expert on internet finance told NBD that it is against central bank's regulations to set up trusts. Besides, problems such as technical limitations and security standards remain.

Currently, the bitcoin market is so volatile that regulators may take special measures to tackle it.

NBD has noticed that investors are allowed to buy bitcoins with leverage to make trades more profitable. But in turn it may increase risks in such a volatile market.

Email: tanyuhan@nbd.com.cn