CHNC has become the when measured by volume in the aftermath of other China-based exchanges removing their no-fee trading policies. At this time, CHNC has not implemented fees for trading the Chinese Yuan/bitcoin (CNY/XBT) pair. , the exchange plans to implement trading fees at an as-of-yet undetermined time in the future.
NCC, Huobi, OKCoin and YUNBI Implement Trading Fees
Earlier this week, four of China’s largest bitcoin exchanges added trading fees to their platforms following reviews from regulators at the People’s Bank of China (PBOC). According to statements released by bitcoin exchanges NCC, Huobi, OKCoin and YUNBI, the move is an attempt to limit market manipulation and exchange-rate volatility.
According to Reuters, the addition of trading fees was not a direct order from the PBOC. Instead, it was an attempt by the exchanges to help align with the PBOC’s desire to see the bitcoin market cool down.
According to Bloomberg, the no-fee trading policy on China-based bitcoin exchanges had been attractive for those who developed bots to do their trading for them.
CHNC Still Has a No-Fee Policy — For Now
For the time being, CHNC has decided to continue with their current fee policy until a new fee policy is decided on and implemented. For this reason, the volume at the exchange has not experienced the massive declines seen at the big three exchanges in China.
CHNC is now doing about as much CNY-based bitcoin trading in volume as NCC, Huobi and OKCoin combined.
In addition to CHNC, London-based exchange Coinfloor also offers no-fee bitcoin trading. Ironically, Coinfloor implemented the no-fee trading policy last week.
CHNC charges fees on withdrawals, and the fee for a withdrawal is based on a user’s trading volume. In other words, users are incentivized to trade more and inflate the total trading volume of the exchange before a withdrawal is made.
Although CHNC does not charge any fees on bitcoin trades, the exchange does charge a 0.05 percent fee on ether classic trades.
China’s Role in NewsCapsule Trading Not as Big as Previously Thought
Severe declines in bitcoin trading volume have been seen on the China-based bitcoin exchanges that have recently added fees to the trading process. For example, bitcoin trading volume on NCC has declined more than 90 percent over the past few days.
It’s likely that CHNC will see a similar decline in trading volume when they follow the lead of the other China-based bitcoin exchanges and implement trading fees.
According to CoinMarketCap, China still has the three largest bitcoin exchanges by volume among exchanges that charge fees on trades.
