[dropcap size=small]B[/dropcap]TC China, the first Chinese Bitcoin Exchange to adapt to the original PBOC notice in December of 2013, has been using a code recharge system for Chinese Yuan (RMB) deposits for the last several months. However, this morning they have announced an end to Chinese RMB deposits on their website, for now. For other Chinese Bitcoin exchanges, the previous source of Chinese RMB recharges/deposits, recharge codes, have since dried up. Searching on Chinese online marketplace Taobao for “bitcoin” will result in an error message as the PBOC specifically mentioned that online marketplaces providing these auctions were facilitating Bitcoin trade.
In March, Caixin reported on an internal memo sent from the PBOC to banks and third party payment processors within China titled: Notice on Further Strengthening Bitcoin Risk Prevention Measures. The Notice prompted BTC China’s competitors to emulate BTC China’s funding model. In the light of the recent strict crack down on Chinese banks providing accounts to Chinese Bitcoin exchanges, some Chinese Bitcoin exchanges are turning to more unconventional funding methods: such as ATMs. The PBOC is now trying to ensure that all Chinese banks and third party payment processors cease any and all contact with Chinese Bitcoin exchanges. It’s always worth mentioning that the Chinese government has not stated that bitcoin is banned for merchants or individuals to use.
BTC China posted to their Weibo microblogging site early on 4/27/14, in China:
A translation is provided below:
Because of this morning’s announcement by the China Merchants Bank, BTC China, in the interest of its users and platforms security, has decided to suspend Chinese RMB recharges (deposits). For subsequent updates, please follow our official website and Weibo account, thanks again for your patronage and support of BTC China #BitcoinAnnouncement#
The Bitcoin community around the world is eager to see how Chinese Bitcoiners will respond to these most recent PBOC actions. Some onlookers have hinted that Hong Kong, or other Special Economic Zones in China, might welcome Chinese Bitcoin exchanges. Furthermore, that the Chinese government might turn a blind eye and allow them to thrive and innovate there, as has been a standard modus operandi for the last few decades for risky new industries.