BTC China halts Bitcoin transactions to China Merchant Bank
BTC China, China's largest Bitcoin exchange handling more than 75% of Bitcoin trades in Yuan, has halted deposits to accounts at China Merchant Bank (CMB).
BTC China, China’s largest Bitcoin exchange handling more than 75% of Bitcoin trades in Yuan, has halted deposits to accounts at China Merchant Bank (CMB).
BTC China says the move is to ensure the security of client funds and stable operations at the exchange.
The move follows CMB’s announcement that its customers would no longer be able to carry out Bitcoin transactions using their accounts at the bank following rising government regulations.
Bobby Lee, CEO at BTC China commented: "We saw the bank’s statement and we took the initiative".
According to Lee, the suspension has not affected the exchange’s operations as the exchange can transact funds to clients’ accounts at other lenders.
CMB’s halt to Bitcoin transactions being carried out by its customers is in response to the People’s Bank of China (PBOC) recent initiatives against digital currency dealings.
In April 2014, the PBOC ordered Chinese payment companies and commercial banks to shut down their Bitcoin trading accounts by 15 April.
The central bank is concerned about financial stability amid the increasing volumes of digital currency trades occurring in the country.
The Chinese Yuan represents about 10% of Bitcoin trades across the globe, and is the second-most used currency in Bitcoin trades after the US dollar.
Following the development, Bitcoin prices fell below $450 on 27 April 2014.