Past precedent provides some hints, though, as bitcoin companies in the region, in one instance, have previously backed out of public conferences due to regulatory pressure.
Another exchange employee, who wished to remain unidentified, expressed dissatisfaction with the reporting, alleging that some of the directives were not in fact new, though he did not provide clarity on which might have been previously given.
Shen is one of the more prolific investors in China-based blockchain projects, backing firms including Juzhen Financials as well as a number of open-source, alternative blockchain projects.
However, he did suggest that the announcement would be worth "following closely".
Just hours after it was first revealed that the People's Bank of China (PBoC) had held closed-door meetings with domestic bitcoin exchanges, new details are emerging about the conversations.
DJ Qian, CEO of blockchain-as-a-service startup BitSE, for example, indicated that the news "does not affect its business" due to its focus on non-monetary applications, a statement that was echoed in other responses.
Tong Li, CEO of Circle China, the bitcoin and blockchain-based messaging service, noted that he is not concerned about the directives or its impact on Circle's operations.
Some of the involved exchanges were said to have cancelled planned activities that would have potentially utilized such a strategy.
A regional exchange employee wishing to remain anonymous dismissed the news as "no big deal" and unlikely to be motivated by any fears that bitcoin may compete with the yuan.
Blockchain investor Bo Shen, founding partner of Fenbushi Capital, expressed similar sentiment, indicating that he had not been in contact with any central bank officials about the topics discussed with bitcoin exchanges.
The article further states that exchanges were advised to comply with know-your-customer (KYC) and anti-money laundering (AML) laws, and to refrain from using automated trading bots to boost volume, according to translation provided by Eric Zhao, from the Chinese Academy of Sciences.
According to a new report by Caixin, the PBoC sought to restrict how the exchanges could seek to acquire potential new users, with the central bank indicating that the startups aren't able to mention the depreciation of the yuan in connection with marketing or otherwise promote their services offline.
At press time, representatives from BTCC, Huobi and OKCoin had yet to respond to requests for comment.
Notably, such instructions do not appear to have been given to startups working on blockchain projects or implementations using the distributed ledger technology behind bitcoin or alternative cryptographic tokens.
Adding potential insight is that Shen did offer a few words of advice to local exchanges, adding:
The comments notably follow news that China's State Administration of Foreign Exchange (SAFE) is looking into bitcoin under its mandate for stopping capital flight.
"Two things I would like to remind those exchanges: high volatility is not good and strict accordance with KYC and AML."
Chinese-style architecture via Shutterstock
Op-Ed: Formally Submitted Comments to the SEC to Approve the Ethereum ETF
“We assembled here today are issuing a new decree to be heard in every city, in every foreign capital, and in every hall of power. From this day forward, a new vision will govern our land… we must thi
Victim of Brazilian Bitcoin Ransom Kidnapping Plot Rescued
A 32-year-old Brazilian woman was recently rescued by the Civil Police on the east side of São Paulo, Brazil. The woman, married to a bitcoin businessman, was kidnapped in Florianopolis on Wednesday.
Results of IBM-Kinno ‘Blockchain in Logistics’ Project to Be Revealed in June
BlockShow Europe 2017 organized by Cointelegraph Events in Munich in the first week of April has showcased a number of established Blockchain solutions for various industries, not limited to finance
Ethereum Developer Denies Filing Complaint Against Ethereum Classic Trust
Jeffrey Wilcke, the co-founder and developer of Ethereum, denied his connection with a complaint submitted to the SEC in regard to Grayscale’s newly launched Ethereum Classic Investment Trust. As
Bitmain Claims Antbleed Had No Malicious Intent, Does it Really Matter for Bitcoin Miners?
Bitmain was caught up in a controversy surrounding its recent patch on its open source codebase. The Bitcoin community harshly criticized Bitmain for developing malware which has the potential to
Is Bitcoin a Great Hedge Against Struggling Debt-Based Economies?
The US is known to the vast majority of the world as the global financial and economic powerhouse. Yet, the US holds the largest amount of external debt at $19.9 trillion. The UK, France and Germany f
Having $5 Mln Seized by Police, OneCoin Begins to Threaten German Journalists
After having $5 mln seized by local law enforcement agencies and police in Germany and India, operators of OneCoin have become more alert. The organization began to target German journalists
82,000 Unconfirmed Bitcoin Transactions in a Day, Necessity of Proportional Fees Obvious
On April 29, the Bitcoin mempool, the holding area for unconfirmed and pending transactions, recorded more than 82,000 transactions. Most transactions were delayed for up to 48 hours. When a