Jihan Wu who is a Bitcoin entrepreneur and runs Bitmain, “a Beijing-based company that develops and sells the world’s leading bitcoin miner hardware” said the following.
The [People’s Bank of China] can potentially have very strong control over the price of bitcoin, at least in the short term, because it can effectively cut the money flow involved in bitcoin trading.
But I don’t think the Chinese Government will do very aggressive regulation over bitcoin. I just think they want to control the risk for those investors who don’t have enough knowledge about bitcoin.
This is in light of many months of speculation due to increased interest in Bitcoin from the Peoples Bank of China (PBOC). Indeed according to cryptocoinsnews.com “in February, digital currency exchange BTCC announced that it was halting its Bitcoin and Litecoin withdrawals as Chinese regulators updated their anti-money laundering measures. OKCoin and Huobi announced a similar measure too.”