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Bitcoin Tumbles After BTC China Halts Funding Amid Concerns PBOC About To Get Serious
Bitcoin prices tumbled almost 15% as Chinese bitcoin exchange BTC China announced it has stopped accepting RMB deposits to user accounts from a major bank. As Coindesk reports, Management decided to proactively halt deposits from one of the country’s largest banks, China Merchants Bank, after the bank posted on its public website that it would no longer allow its customers to engage in bitcoin-related transactions, and said essentially it would require all such businesses to close their accounts. Withdrawals, of course, are allowed, but as Coindesk goes on to note, that while the PBOC's 'official' policy on Bitcoin has not changed since December, this 'pre-emptive' move may suggest he PBOC would soon set stricter rules about how its earlier edicts should be followed.
As Coindesk reports, management decided to proactively halt deposits from one of the country’s largest banks, China Merchants Bank, after the bank posted on its public website that it would no longer allow its customers to engage in bitcoin-related transactions, and said essentially it would require all such businesses to close their accounts.
A rough translation of BTC China’s Weibo post reads:
“Due to a notice issued by China Merchants Bank, BTC China, out of consideration for user security and stabilization operations, decided to suspend the credit of accounts with RMB.
For subsequent updates, please pay attention to our website and Twitter, thank you again for your interest and support of BTC China.”
BTC China CEO Bobby Lee said his company had not yet any direct notifications from any of its banking partners, but was ready to act should such information arrive. Apart from the China Merchants Bank website posting, which did not specify any exchange by name, no other banks have stated their intentions as yet.
This followed reports last week that financial institutions were preparing to sever links with bitcoin exchanges, after closed session meetings with People’s Bank representatives.
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The PBOC itself has continued to deny that it will ban bitcoin outright, though it has not made any public statements about how it intends to restrict digital currency use in the country.
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The meetings were reportedly more grave in tone than on previous occasions, suggesting the PBOC would soon set stricter rules about how its earlier edicts should be followed. As well as preventing users from funding their bitcoin exchange accounts, the new guidelines could eventually limit their ability to withdraw from bitcoin and litecoin into yuan as well.
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PBOC has said owning/buying/selling Bitcoin in China is legal, probably to appease domestic U.N./ACLU types over there. They also said Banks cannot interact with Bitcoin businesses directly or indirectly. They said this months ago but just came out indicating "they really mean it this time". So this may boil down to a fungibility issue for Chinese Yuan. Electronic (bank) Yuan being incapabable of purchasing Bitcoin but paper Yuan, evidently, being allowed. This is probably their attempt to kill the BTC market (giant capital controls loophole) in China without outright doing so. It is yet to be seen how well Chinese citizens get around these restrictions. Every PBOC road block put up in the past has been worked around but the BTC market has been in decline.
There is much bitcoin mining happening in China. China may in the end become a bitcoin export country, selling freshly mined bitcoins to the west for fiat. This might be the Chinese governments desire without making possession and mining of bitcoin completely illegal in China.
No worries, China is meaningless, their currency is about to get a whole lot cheaper, this is just a reaction to their worry about RMB withdrawals and a way to stem the real economy from liquidating currency, as Bitcoin is a real threat to the PBOC. Anyway sell RMB the pyramid is slowly eroding, good luck China, the dollar is about to kick your ass anyway. Hoard the gold while you can, the FED and ECB will continue to pound it out for you, there is no where to hide,
bitcon is a massive scam and a con game.
only thing keeping it afloat are the billions of imbeciles breathing my good air.
Hey lady,
Get back to packing my groceries. You'll end up using bitcoin because you will have to eventually. Now make sure the eggs don't get crushed and put the canned goods on the bottom. You're going to need the practice as this will be as far as you rise with a mind like yours. I love slaves. You can't all be me, the great Kim Jong Un.
from the look of ya, groceries is something you already have too much of
I think you are sore PM investor. I invest in PM too, but I don't need to piss on someone else's investments to make my frugal life seem more tolerable.
LOL! I will only hold Gartman Coins in Bit-Terms!
mwhahahahahahaa