BTC China: merchants deposits disconnected from bank accounts

Monday 28 April 2014 09:53 CET | News

BTC China exchange has decided to disconnect local-currency deposits to clients’ China Merchants Bank accounts, as lenders close accounts with Bitcoin exchanges due to government measures to check surging trading in the virtual currency, reports.

BTC clarifies on its official blog that the suspension aims to protect security of client funds and ensure stable operations. Merchants Bank banned the use of its accounts for Bitcoin transactions, according to a statement dated 25 April 2014 on the lender’s website.

The People’s Bank of China banned financial institutions from handling Bitcoin transactions in 2013, thus reflecting concerns about the risk posed to China’s financial stability after trading in the digital currency surged in the nation.

CoinDesk’s Bitcoin Price Index decreased about 1/5 after Caixin magazine reported on 27 March 2014 that the PBOC ordered lenders and payment companies to close the trading accounts of more than 10 Bitcoin exchanges. Bitcoins recently changed hands for USD 453.80, according to the index.

BTC China, set up in June 2011, has the biggest Chinese Bitcoin trading platform, according to its website.

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Keywords: China, BTC, exchange, deposit, bank account, law infringement, deposit suspension, Bitcoin, digital currency
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce