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
GDAX Exchange to Reimburse Traders After Ether Flash Crash
GDAX, the digital asset exchange operated by Coinbase, is moving to issue refunds after a stunning flash crash last week stoked anger amongst affected traders.
Ether prices dramatically plunged to
Bitcoin Shows What Banking Should Be: American Banker
American Banker, a daily trade newspaper that has been covering the financial sector since 1836, recently featured an analytical piece by its editor-in-chief Marc Hochstein entitled “How I missed the
Sharing Economy: Why Blockchain Might Be Next Big Thing for Office Rental
The shared workspace model is poised to transform the world of work, catering to current and future trends by creating flexible and adaptive office ecosystems. According to Jones Lang LaSalle, shared
Portugal Wants to Tax Bitcoin Users, despite Lack of Regulations
Just like in the rest of the world, the media in Portugal have been all over bitcoin because of the cryptocurrency’s growing popularity… and value. Back in April, Portuguese newspaper Jornal de Negóci
Cryptocurrency Market: Is There a Price Drop around the Corner?
The cryptocurrency price rally may soon hit a temporary hurdle, leading to a slight fall, before picking up the pace again. The forecast was made by Fred Wilson, a cryptocurrency investor, and
Proof-of-Life: Vitalik Buterin Uses Ethereum to Disprove Death Hoax
Vitalik Buterin, the creator of ethereum, used the technology in an unusual way this weekend, turning to the blockchain network itself to disprove his own death.
The hoax originated on the 4chan in
Major Chinese Bitcoin Exchange Lists Ethereum Classic Ahead of Ethereum
BTCC, the second largest Bitcoin exchange in China and the world, has announced the integration of Ethereum Classic on its newly released digital cryptocurrency exchange BTCC DAX. High-profile
Monday Massacre: Bitcoin, Ethereum Lead the Way as Cryptocurrencies Retreat into the Red
Cryptocurrency traders woke up to a sea of red this morning, as 92 of the top 100 cryptocurrencies by market cap experienced a marked price decline. The bitcoin price led the retreat, falling over 6%