BTC China Temporarily Suspends Chinese RMB Deposits
ForexMinute.com – Acting on the recent rulings by Chinese Central Bank PBOC, BTC China yesterday temporarily eradicated Chinese RMB deposits from its services. The exchange earlier refused to make any changes to its functionalities as per the PBOC rulings, saying that no official statement has been issued to them regarding the matter. Meanwhile, its counterparts OKCoin, FXBTC, Huobi and BTC Trade had already halted their Chinese RMB operations.
What Influenced BTC China?
Chinese news website Caixin reported on Thursday about an alleged meeting held between PBOC officials and the commercial banks and third party payment companies’ representatives. According to the report, the meeting was conducted to resurface PBOC’s March orders that asks local banks to end their business relationships with Chinese Bitcoin exchanges. We elaborated this whole event in our Friday’s Cryptocurrency Trading News.
Meanwhile, the impact of this news was clearly visible in the cryptocurrency sector. However, the media does not have any concrete record that explains why BTC China suddenly prompted to halt its Chinese RMB deposits, especially when it was the only remaining exchange that was operational in Chinese Yuan traders throughout the episode.
Although it is nothing less than a conspiracy theory, but we believe that the exchange might have finally received an official notice from PBOC, or by its respective commercial bank to halt its Chinese currency operations.
PBOC is also said to have criticized financial institutions that were providing services to BTC China. While clarifying its policies on banks doing business with Bitcoin institutions, the central bank commented, “The current level of services that banks and third-party payment processors provide counts as directly providing services to Bitcoin related companies. Online stores and public marketplaces that sell or trade ‘deposit codes’ from Bitcoin exchanges counts as indirectly providing services to Bitcoin related companies.”
Although, the halt is somewhat temporary but there is a higher possibilities of BTC China, and all other Chinese Bitcoin exchanges, to move their accounts offshore.
We will keep you reported on this matter in our coming reports.
To contact the reporter of the story: Yashu Gola at email@example.com
Subscribe to our daily forex newsletter at www.forexminute.com/newsletter