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Chinese Bitcoin exchange BTCC stops withdrawals

Major Chinese exchange BTCC has announced the suspension of withdrawal. The exchange stated that this suspension would last until March 15.

The exchange was forced to take this step under the People's Bank of China’s pressure, which had previously issued a warning to cryptocurrency companies in the country to comply with regulations in the fight against money-laundering and the outflow of capital from the country.

Thus, the customers of China’s ‘big three’ bitcoin exchanges are not able to withdraw funds at the moment.

Two other leading Chinese platforms such as OKCoin and Huobi make similar decisions last week, and CHBTC followed their example a few days later.

According to the BTCC’s statement, the reasons of the suspension of withdrawal are the same as ones offered by OKCoin and Huobi. In particular, an upgrade of the user verification system will be carried out to enable the exchange to operate in accordance with the anti-money-laundering rules that cryptocurrency companies of China must now strictly comply with.

It is possible that the suspension might be lifted if the system upgrade is completed before the 30-day period.

The news of the suspension of withdrawal on BTCC is also remarkable in terms of market reaction: unlike last week, when similar news from OKCoin and Huobi led to a sharp decline, bitcoin traders seem to have shrugged off the news. At the time of publishing, bitcoin was trading to the dollar at $1025.

The sharp decline in a trade volume on Chinese platforms has also been noted. For example, according to Coinhills, OKCoin takes 7th place worldwide, and BTCC, which was an undisputed global leader, takes 17th place. Houbi is even lower and it takes 19th place.

Earlier this week, OKCoin reported on a possible returning of transaction fees to large traders, including those who use API. Verification of users and their compliance with financial regulation relating to money-laundering will be mandatory.

At the same time, not all platforms have been able to adapt to the new realities of the cryptocurrency market of China. For example, HAOBTC announced its impending closure.

Source: forklog.com

  • February 17, 2017 4:37 PM MSK
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