There is only so much you can regulate on decentralized network. Exchanges have nothing to do with bitcoin just as supermarkets have nothing to do with products they sale.
The part you can control is the distribution of the product. But how can you regulate internet not to distribute bitcoin? You can't just as you cant stop people from sending email or running mail server.
The part you can control is the distribution of the product. But how can you regulate internet not to distribute bitcoin? You can't just as you cant stop people from sending email or running mail server.
I guess they are more worried about people laundering Chinese Yuan. That can be checked to a certain extent if they have access to the identity of people depositing/ withdrawing from the exchanges. I wouldn't be surprised if the Chinese government (like the US) asked for a data dump from the exchanges.
