BTC-e has opened up USD/CNH, BTC/CNH, and LTC/CNH markets today. With looming PBOC action that would end Chinese Bitcoin exchange’s access to domestic bank accounts, Chinese traders are undoubtedly looking for new exchanges to trade on. Along with Chinese RMB (CNH to BTC-e) trading comes RMB deposits, which are handled through an international bank. An international bank means that Chinese traders wishing to convert fiat to crypto through this route will be subject to the Chinese $50,000 annual limit. In fact, people are starting to realize that the PBOC’s still shrouded notice to regional banks requiring action by 4/15/14 just forces Chinese exchanges to operate with international banks, and submits all Chinese Bitcoiners to a $50,000 annual buying limit.
Despite the growing concerns over BTC-e’s anonymity, it seems that new users will continue to flock to them due to this new feature.
Getting CHN To BTC-e
BTC-e is accepting Chinese RMB deposits via wire transfer to their Australian bank, the National Australian Bank. As always, this little note is attached:
Our bank may ask your documents due to a high fraud activity. If you seen in your btc-e account a money hold please provide a copy of you ID and utility bill in high res quality (>300DPI), create ticket with your ID in subject at https://support.btc-e.com and upload your docs inside
Details of Payment is required field.
Without correct Details of Payment we can’t credit money to your account.
Funds will be credited within 7-10 days.
We don’t accept international wire transfers from US Citizens or from US Banks
All transfers from US Citizens or US Bank will be refused by bank
Chinese Banking Restrictions
From this Wall Street Journal article on capital flight out of China,
China officially maintains a closed capital account, meaning it restricts the ability of individuals and businesses to move money across its borders. Chinese individuals aren’t allowed to move more than $50,000 per year out of the country. Chinese companies can exchange yuan for foreign currencies only for approved business purposes, such as paying for imports or approved foreign investments.
The article goes on to describe a Chinese man who recently bought a ~$390,000 Cypriot beachfront condo. When asked to describe how he got around the $50,000 per year limit he said that he used a method tolerated by authorities in China and utilized by real estate agents in China. The method is to recruit friends to transfer chunks of money, always under $50,000, under their own names.
In order for a Chinese national to exceed the $50,000 limitation in yearly payments out of the country without the aforementioned trick, he or she must submit documents to the local State Administration of Foreign Exchange (SAFE) for approval. Though most Chinese banks are qualified to do foreign exchange business, they never cross the $50,000 individual limit without SAFE approval.
Additionally, within the $50,000 limit on out-flowing money, each transaction at the bank must be clearly marked as outbound regular payments or outbound capital investments, the latter of which is subject to additional stringent regulations. As such, it is highly unlikely that SAFE would approve a larger than $50,000 amount in a wire transfer to BTC-e’s National Australian Bank.
Last modified: June 14, 2020 9:26 AM UTC