Are you a lawyer? Visit our professional site Go to professional site.

Chinese bitcoin exchanges resume withdrawals

Posted by

As reported by Reuters, a long-lasting withdrawal freeze in China’s bitcoin exchange ecosystem is finally being lifted.

WebJD Bitcoin

Withdrawals resume

On June 1st, Bitcoin prices rose to USD $2400 on news that three major Chinese exchanges (BTCChina, Huobi and OKCoin) were going to allow customers to withdraw Bitcoin after all, reversing a decision the exchanges had made just three months ago. This comes on the heels of several back-and-forth decisions on the matter, with each decision causing fluctuations in the global value of the currency.

Bitcoin withdrawals from leading Chinese exchanges are now allowed, albeit contingent on passing a verification requirement and also subject to daily (10 Bitcoin) and annual (USD $1 million) withdrawal limits.

Capital outflow controls

The People’s Bank of China (PBOC) is seeking to crack down on Bitcoin trades in connection with possible legal violations related to money laundering and foreign exchange management. Specifically, the PBOC has expressed concern that Bitcoin could facilitate capital flight in the Chinese economy — a Chinese investor can buy Bitcoins on Chinese exchanges and then sell them on exchanges outside of China, thereby circumventing official limits on conversion between Chinese renminbi (RMB) and other foreign currencies.

Although Bitcoin withdrawals account for only a small portion of total capital outflows from China, Chinese Bitcoin trading has accounted for approximately 98% of total global Bitcoin trading over the past six months.

One reason the PBOC may be less concerned about Bitcoin is that the RMB has bucked forecasts that it would continue to fall (after losing about 6.5 percent against the United States dollar (USD) last year), instead gaining more than 2 percent against the USD so far this year.

  • Add a comment

    You must be logged in to comment.

    About WebJD

    Lead by former Microsoft Piracy Czar David Kay, we created WebJD as a means of promoting free access to the law, while at the same time better connecting qualified legal professionals with clients in need. For more information about WebJD China, please see the site’s Privacy Policy, Community Guidelines and Terms of Service.


    Content on WebJD is provided for educational purposes only; and does not constitute specific legal advice or form any attorney-client relationship.
    Copyright © 2015-2018 Shanghai CheLin. Design by WebMD Limited. All rights reserved. ICP备13034603号