Verify:
OKcoin get fined by The Higher People's Court of Heilongjiang Province,the judge is finished at July 14th,and put online at July 29th.This judge is beyond most people's awareness because the company and and other peer companies didn't want to spread the news until today(20160813) The Securities Times(in Chinese is 证券时报）criticized that blockchain trading should be subject to legal supervision by describing a recent case in a passage without naming the defendant is OKcoin.
As we all know,Chinese authority’s attitude towards bitcoin is restricting the use and prohibiting bitcoin links to the Substantial Economy.Since this judge is the first judge that the major Chinese bitcoin exchange is the defendent,we can get some real concerns of the athority by analyzing the judgments.
○The business on OKcoin is illegal
"Lekuda company’s main business is OKCOIN ,which is a virtual currency exchange.It provides customers with a web space to exchange virtual assets and it profits by charging its clients fees (0.2%-0.4%) . Its dealings in accordance with the the 22nd Case of Network Management of Transactions (in Chinese 《网络交易管理办法》. According to this law,if the company wanted to provide online trading business,it should register at the administration of Industry and Commerce and get a business license.Lekuda company registered business scope only include such areas:technology development, transfer of technology, technical services, technical marketing, consulting and investment management.Trading bitcoin for profit-making purpose is beyond the range permitted by the administrative authorities . "
→ It shows OKcoin runs the business without approval
○OKcoin(it refers to okcoin.cn) is not recorded at the Telecommunications authorities of China "To the end of the trial, Lekuda failed to provide related materials recorded at the Telecommunications Authority registration .The address/domain name record information is not stamped with the seal of the Department, and it could not prove its effectiveness "
→In China,every online service provider should be registered at the Telecommunications authorities. It shows OKcoin lacks the recorded approval documents ,so it cannot provide online service in mainland China
○OKcoin failed to strictly review the real names of every user,which makes it easy for money washing by bitcoin This case is caused by a criminal utilizing the loose review of user's real names in OKcoin .The criminal first cheated a company a large sum of money(12 million RMB,or 1.8 million US dollars),then used ID cards bought online to open up an acounts at OKcoin,at last used the money to buy Bitcoins and withdrawed in Macao.
→Since the Chinese authorities prohibited any third-party payment services linking to bitcoin trading in 2014,the exchanges in China had to use the the accounts of its employee or other companies,a loose review of the real names increase the risk of money laundering,which the Chinese authorities would not like to see.They are afraid of the money flee from China.
https://www.reddit.com/r/Bitcoin/comments/4xjtcw/okcoin_fined_by_chinese_court_for_helping/ 
