BTC China suspends yuan deposits

Following a post on the China Merchants Bank website late last week, Chinese bitcoin exchange BTC China announced that they are halting all deposits in yuan. In a post on BTC China’s Weibo social networking account, the exchange claimed the move was made “out of consideration for user security and stabilization operations.” It’s not clear if this move is temporary or more long-term. BTC China CEO Bobby Lee has repeatedly claimed that he has not heard any official notification of bitcoin-related policy changes from his banking partners.

Due to the on-again-off-again rumors of a looming “ban” on bitcoin from the People’s Bank of China, many Chinese exchanges have crafted plans to locate their banking operations offshore to more favorable areas. PBoC officials have stated publicly that they have no intention or authority to ban, or even control, bitcoin-related activities. Yet, stories from China’s Caixin financial news service and several seemingly independent closures of bitcoin-related accounts by Chinese banks suggest that there might be more to the story.

Given the silence on the topic from the PBoC, and the complete lack of official policy change following the rumored ban deadline of April 15, it’s still unclear what bitcoin’s fate is in the country.