BTC China has resumed activity and allowing bank deposits.
After the memo released by the People’s Bank of China (PBOC) on December 5th 2013, exchanges including BTC China, China’s largest Bitcoin exchange, ceased services to comply with the new restrictions. After evaluating the memo and the regulations surrounding the new restrictions, BTC China founder and CEO Bobby Lee stated the exchange will resume operations within the legal limits of what was set by PBOC.
“Previously, we judged doing this as not being viable, however, we have since changed our stance. We looked again at the guidance issued in December and we think it’s a reasonable for us to accept customer deposits via our corporate bank account,” said Lee.
According to the PBOC’s memo, residents of China are able to exchange funds for Bitcoin as long as the exchange is registered with the Ministry of Industry and Technology (MIIT). The memo focused more on businesses who intend to accept Bitcoin in exchange for goods, treating Bitcoin as viable tender. The memo clearly states Bitcoin should not be considered a currency, but as a commodity.
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“The fact the PBOC said exchanges need to register with MIIT essentially means it recognises exchanges as a business category and BTC China as a legitimate business,” Lee added.
As the authorities or the PBOC have yet to interfere with BTC China resuming operations, we are to understand the Exchange is working within the legal boundaries.
Check our comprehensive list of Bitcoin regulations around the world.