More Bitcoin Accounts Ended as PBOC Restrictions Take Effect

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Some major bitcoin exchanges announced verbal termination notices from their banks on Thursday as a cloud of uncertainty hovered above the virtual currency exchanges.

OKCoin and Huobi, both bitcoin exchanges, announced via their respective websites that their bank accounts had been closed by Friday afternoon, China time.

According to Bitcoinfeed, China has not yet outlawed the digital currency, despite some unfounded reports. The suggested bans touch on the way users or buyers fund the bitcoin accounts. So far, nothing has been said about direct withdrawals from exchanges or other transactions involving the bitcoin.

Chinese exchange CHBTC indicated that it was aware of notifications to bitcoin exchanges to close their exchange accounts in an announcement via its website.

The exchange said it had hoped all had passed, however, “as of 10am on 4/17 we officially received notification from the Bank of China Beijing Baijiazhuang branch to close our account, and after verification by our senior management in Beijing, we are carefully making this public statement,” as Coindesk reports.

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A phone conversation between CHBTC and its banking partner indicated that the exchange was not furnished with formal documentation of specific directives requiring it to close its account.

When asked for documentation, the bank said it was not in a position to answer, but did know that CHBTC was involved in some form of bitcoin trade. CHBTC asked if it could just zero out the account as opposed to closing it, but the bank said it hoped the exchange would not make things more difficult.

As per the phone conversation transcript, BHTC also sought to know what the outcome would be if it chose not to close the account pending receipt of a formal and documented notice. The bank said “then it is up to you,” adding that it called because it hoped the exchange would close its account. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Deepak Tiwari at deepak@forexminute.com