Horn
29th April 2014, 02:32 PM
SHANGHAI—Chinese bitcoin (http://on.wsj.com/17w5giu?lc=int_mb_1001) exchange BTC China is no longer accepting customer deposits in yuan from one of the country's largest banks, China Merchants Bank (http://quotes.wsj.com/CN/600036) Co.
The move by the exchange, which was the largest bitcoin (http://on.wsj.com/17w5giu?lc=int_mb_1001) dealer in the world for a brief period last year, is the latest indication of the Chinese central bank's clampdown on trading of the virtual currency.
China Merchants Bank told BTC China to cancel accounts with it, according to a posting by the exchange on its official account with the microblogging site Sina Weibo on Monday.
Last week, China Merchants Bank said it would stop handling bitcoin-related transactions, the first statement by a major Chinese bank to address bitcoin. The reasons behind the move were to "protect public interests [and] safeguard the legal status of the yuan to prevent money laundering," according to a statement on the lender's website Friday.
The People's Bank of China issued a statement in December banning financial institutions in China from dealing with bitcoin. Since then, the central bank hasn't disclosed further details about its stance, but bitcoin exchanges here have begun to stop taking deposits in yuan in response to what has been reported to be a behind-the-scenes order from the central bank for payment companies and banks to close bitcoin-trading accounts.
Two small bitcoin exchanges, Shenzhen-based BTC 38 and Shanghai-based FX BTC, stopped taking customer deposits in yuan earlier this month.
Until Monday, Shanghai-based BTC China took no public action. Kenneth Ling, a spokesman for the exchange, said it hadn't received any notice from the banks it works with until now. The exchange is continuing to accept yuan deposits from other banks, as well as continuing to accept deposits in bitcoin, according to Mr. Ling.
According to Coindesk, which publishes an index of bitcoin prices, one bitcoin was worth $422.66 Monday afternoon, down roughly 15% from before China Merchants Bank issued its statement Friday.
http://online.wsj.com/news/articles/SB10001424052702304163604579528994154070308?mg=ren o64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB1000 1424052702304163604579528994154070308.html
The move by the exchange, which was the largest bitcoin (http://on.wsj.com/17w5giu?lc=int_mb_1001) dealer in the world for a brief period last year, is the latest indication of the Chinese central bank's clampdown on trading of the virtual currency.
China Merchants Bank told BTC China to cancel accounts with it, according to a posting by the exchange on its official account with the microblogging site Sina Weibo on Monday.
Last week, China Merchants Bank said it would stop handling bitcoin-related transactions, the first statement by a major Chinese bank to address bitcoin. The reasons behind the move were to "protect public interests [and] safeguard the legal status of the yuan to prevent money laundering," according to a statement on the lender's website Friday.
The People's Bank of China issued a statement in December banning financial institutions in China from dealing with bitcoin. Since then, the central bank hasn't disclosed further details about its stance, but bitcoin exchanges here have begun to stop taking deposits in yuan in response to what has been reported to be a behind-the-scenes order from the central bank for payment companies and banks to close bitcoin-trading accounts.
Two small bitcoin exchanges, Shenzhen-based BTC 38 and Shanghai-based FX BTC, stopped taking customer deposits in yuan earlier this month.
Until Monday, Shanghai-based BTC China took no public action. Kenneth Ling, a spokesman for the exchange, said it hadn't received any notice from the banks it works with until now. The exchange is continuing to accept yuan deposits from other banks, as well as continuing to accept deposits in bitcoin, according to Mr. Ling.
According to Coindesk, which publishes an index of bitcoin prices, one bitcoin was worth $422.66 Monday afternoon, down roughly 15% from before China Merchants Bank issued its statement Friday.
http://online.wsj.com/news/articles/SB10001424052702304163604579528994154070308?mg=ren o64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB1000 1424052702304163604579528994154070308.html