Introduction to OKCoin.cn
OKCoin Bihang (www.okcoin.cn), affiliated with the Beijing LeKuDa Network Technology Company
Limited, is one of the most popular digital asset trading platforms around the world. OKCoin mainly
provides trading and exchange services to Chinese citizens between the Chinese Yuan and Bitcoin,
Litecoin, Ethereum and other digital assets.
The core team of OKCoin Bihang consists of people from world-recognized companies such as Alibaba,
Tencent and Huawei. We believe the core principles of Bitcoin, the blockchain, the distributed
ledger, and smart contracts can reshape the ways in which people trust each other. This
transformation will eliminate barriers to transactions, increase the efficiency of transactions
across society, and eventually have a significant impact on the global economy. Because of this, we
have foregone handsome salaries elsewhere and devoted ourselves to the blockchain technology
revolution. By doing this, we hope to achieve something that may change the world.
At the very beginning of its existence, OKCoin Bihang gained millions of US dollars worth of angel
investments from VenturesLab, co-founded by the globally recognized Tim Draper who similarly
invested in leading companies such as Hotmail, Baidu, and Tesla. In early 2014, OKCoin Bihang
received an investment of 10 million US dollars from China’s famous venture capital fund Ceyuan and
Longling Capital, owned by the founder of the Hong Kong listed company Meitu (01357.HK).
OKCoin technical introduction
OKCoin Bihang has adopted advanced technologies such as GSLB, distributed server clusters,
distributed storage, and a high-speed memory-based trading engine all backed up in multiple
machines, cold storage locations, and hot wallets with offline private keys. Our safe, stable and
reliable digital asset trading services are delivered to our customers via web interface and mobile
app. For better servicing every customer, we are continuously listening to their kind new
suggestions and requests to improve our products and services. We will never stop to innovate and
improve on our customer experience.
Introduction to Digital Assets
Digital assets represented by Bitcoin has seen significant growth as an innovative practice of
internet technology since 2009. Today, there are tens of millions of Bitcoin and other digital
asset users in dozens of countries around the world. The underlying blockchain technology that stems
from Bitcoin is the assets greatest application to society. Many public figures in the world have
compared Bitcoin to the invention of the Internet. A large portion of these same people believe
that Bitcoin and its underlying blockchain technology is the foundation of the “internet of finance”,
and that is has the potential of re-building the global financial system from its very foundations.
As Bitcoin and blockchain become increasingly popular around the globe, many world-class venture
capital firms and entrepreneurs are pouring into the industry. A Bitcoin and blockchain based
economy is already in the early stages of formation. On a global scale, Google, Goldman Sachs,
Softbank and NYSE along with many other world leading companies have invested in multiple
start-up companies in this field. Bitcoin and blockchain will certainly find applications in fields like
banking, securities, insurance, audit, and notary over the next 5 to 10 years. The total
economic value contributed by Bitcoin and blockchain technology may well reach into the hundreds of
billions of US dollars.
Currently, mainstream industries in this world hold 5 viewpoints towards Bitcoin and blockchain technology, with a consensus slowly being formed. These are:
1. Bitcoin is a virtual good and is similar in many ways to more traditional investments.
2. Bitcoin is a peer-to-peer payment method and has the potential of challenging Visa’s market dominance.
3. The Bitcoin blockchain, as an underlying blockchain, can provide consensus solutions to other public blockchains, with Bitcoin itself as the fees for this service. Because of this, the Bitcoin blockchain may become the infrastructure on which all other blockchain applications are built in the future.
4. Bitcoin is a virtual currency on the internet. It has some attributes of traditional currencies and some attributes of traditional payments systems in certain internet communities.
5. Bitcoin is a reserve asset like gold, and because of its standardization, divisibility, and the ability of conducting online transfers, it has great advantages in many aspects such as payment efficiency, preservation cost, and more. Because of this, it has the potential of becoming a form of “digital gold”, and is therefore an asset with the possibility of replacing gold in the internet of value era.
Most countries do not recognize Bitcoin as currency, instead defining it as virtual good.
Nevertheless, many jurisdictions have established regulations or have actively started to
support its growth. The overall attitude of regulatory bodies is now changing from a neutral view to a
positive one. The United States itself has included Bitcoin into the traditional financial
regulatory system, with Bitcoin companies being required to apply for MTLs (Money Transmitting
Licenses). The state of New York has introduced BitLicense for the exclusive regulation of
Bitcoin. Many European countries have also been adopting positive attitudes towards Bitcoin. Some
countries have established regulatory a framework for Bitcoin, with some of these insisting that
Bitcoin-involved economic activities should be subject to traditional taxes. The FSA of Japan
has officially recognized Bitcoin and digital currency as a legal currency, and has ruled that all
digital currency exchanges must register with them. The Russian government issued a ban on
Bitcoin in the past, but has revoked it after many other jurisdictions published their regulations. The
governor of the Indian central bank Raghuram Rajan said that before we have a consensus on the
potential of Bitcoin, we should study it in-depth instead of act too forcibly.
In 2013, the People’s Bank of China and the five ministries and commissions published the Notice
on the Prevention of Bitcoin-Associated Risks, stating that Bitcoin is a virtual good and that it
does not have equal legal status as a currency. This notice stipulated that it should not and could
not be used and circulated in the market as currency. It also stated that citizens have the freedom
to participate in bitcoin trading, which is an activity on the internet of buying and selling, at
their own risk. However, Bitcoin trading platforms in China and elsewhere are obligated to oblige with
Anti-Money Laundering laws and customs.