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Chinese Government Forces Suspension of Bitcoin Bank Transfers

Chinese Government Forces Suspension of Bitcoin Bank Transfers

The Chinese government has forced two bitcoin exchanges to suspend bank transfers from customers depositing Yuan to buy bitcoins.

Chinese Government Forces Suspension of Bitcoin Bank Transfers

China’s major bitcoin exchanges have been forced to stop accepting deposits via bank transfers.

The exchange FXBTC has said that a number of banks had ordered it to close accounts used for taking customer deposits due to tightened regulations from China’s central bank.
All commercial banks and third-party payment platforms have now been ordered to close all services related to bitcoin transfers.

A second exchange, BTC38, has issued a similar notice saying that due to the “influence from China’s central bank” the exchange had to revoke deposits via bank transfer.

The news is unsurprising after last month’s statement from the Chinese government saying that it wanted to tighten regulations covering bitcoin. By April 15th China’s central bank is requiring all banks and third-party payment companies to close accounts operated by bitcoin exchanges.

However, not all exchanges have followed the new guidelines yet. BTCTrade.com has said that it will be temporarily suspending online currency transfer; however, bank transfers are still accepted.

China’s biggest bitcoin exchange, OKCoin, has said that bank transfers are still in operation. Furthermore, the exchange said that it has made $10 million in Series A funding. The funds will be used to develop the company’s team, R&D and overseas departments.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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