The latest Bitcoin news from China is in. A handful of Chinese banks have decided to kick off the week by unilaterally banning Bitcoin-related accounts. Tuesday morning in China, Ping An Bank and China Everbright Bank both posted notices to their website announcing that they would suspend accounts of individuals or organizations caught participating in Bitcoin or Litecoin transactions. Both banks explicitly mentioned the PBOC as the source of this decision. Also, both banks call for the public at large to report any individuals or organizations that might be involved with Bitcoin or Litecoin trading. Recently, Chinese banks have started halting deposits into Chinese Bitcoin exchange, and a smaller Bitcoin exchange has even thrown in the flag.
Over the last several months, the Chinese Bitcoin exchanges have jumped through many hoops to get Chinese RMB into and out of their coffers. Some exchange heads used their personal bank account to receive and transfer Fiat in and out of the exchange once Chinese banks started cracking down on Chinese Bitcoin exchanges months ago. Most other Chinese Bitcoin exchanges eventually adapted to a voucher/code system that was originally pioneered by BTC China. Now, though, the Chinese banks that have promised to suspend any Bitcoin or Litecoin related accounts have also explicitly banned the funding of voucher codes, one of the harshest blows to the Bitcoin community yet. However, the light at the end of the tunnel isn’t a quiet resting place; instead, it is the intrepid light of hope. Bitcoin ATMs have started to spring up all around China and BTC China has promised to release a Picasso web application that will turn any willing Chinese into walking and talking bi-directional Bitcoin ATMs. The web-app will be able to run on any smart phone since it operates within a browser, unlike MyCelium’s Local Trader App which has similar functionality but is only available on Android.
Below are the translated announcements from Ping An Bank and China Everbright Bank.
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根据中国人民银行等五部委联合下发的《关于防范比特币风险的通知》(银发【2013】289号),为保护社会公众的财产权益,维护人民币的法定货币地位,防范洗钱风险,从即日起,任何机构和个人不得将我行账户用于比特币、莱特币等的交易资金充值及提现、购买及销售相关交易充值码等活动,不得通过我行账户划转相关交易资金。一经发现,我行有权采取暂停相关账户交易、注销相关账户等措施。
社会公众发现上述行为的,可以向我行举报。
特此声明。
English Translation:
In accordance with the PBOC’s notice on the prevention of Bitcoin risk (No. 289), and for the protection of the public’s interests, and to safeguard the legal status of the Yuan currency as well as to prevent money laundering risks… From this day forward, any organization or individual that participates in Bitcoin or Litecoin trading withdrawals or deposits, purchase or sale of recharge codes, or other related transactions are not allowed to use their bank account to transfer funds for that purpose. If found, the bank is entitled to suspend such transactions and cancel such accounts.
If the public finds out about such acts, they can be reported to the bank online.
This announcement is hereby certified.
为保护社会公众的财产权益,维护人民币的法定货币地位,防范洗钱风险,从即日起,任何机构和个人不得将我行账户用于比特币、莱特币等交易资金充值及提现、购买及销售相关交易充值码等活动,不得通过我行账户划转相关交易资金。一经发现,我行有权采取暂停相关账户交易、注销相关账户等措施。
社会公众发现上述行为的,可以向我行举报。
特此声明。
English Translation:
In order to protect the public’s interest, maintain the exclusive legal tender status of RMB and to prevent money laundering risks…From this day forward, any organization or individual that participates in Bitcoin or Litecoin trading withdrawals or deposits, purchase or sale of recharge codes, or other related transactions are not allowed to use their bank account to transfer funds for that purpose. If found, the bank is entitled to suspend such transactions and cancel such accounts. If found, the bank is entitled to suspend such transactions and cancel such accounts.
If the public finds out about such acts, they can be reported to the bank online.
This announcement is hereby certified.
That’s right; both banks use the same wording after slightly different introduction sentences. I wonder where a Beijing Bank (China Everbright Bank) and a ShenZhen Bank (Ping An Bank) would get the same exact “certified” words from… I’m looking at you PBOC. The PBOC originally released the infamous Notice No. 289 back in December of 2013. Chinese banks ignored previous deadlines set by the PBOC which drew their direct attention and resulted in inquiries/interviews with Chinese banks and third party payment processors. The result of the recent PBOC crackdown is becoming very clear. Bobby Lee still maintains that he hasn’t seen anything from the PBOC; however, even BTC China has been forced to close Fiat deposits due to action from their bank: Bank of China.
As Nassim Taleb tweeted , then retracted, almost a full calendar year ago (a millennium in Bitcoin years):
“For bitcoin to make it it needs to be banned by a few governments and critiqued by policy makers. Otherwise it will fade. #Antifragile.”