Banks ceasing Bitcoin services

By Yang Jing Source:Global Times Published: 2014-4-15 23:28:03

Several Chinese Bitcoin trading platforms have announced that some commercial banks have stopped providing services for them since Monday. Experts said Tuesday this might drive away some speculators due to the inconvenience.

Okcoin.com, a Chinese Bitcoin trading platform, announced Monday on its website that a branch of China Merchants Bank stopped providing remittance service to OKCoin's account, but investors can still make deposits to their accounts on OKCoin through other commercial banks.

Huobi.com and btctrade.com, two other Chinese Bitcoin trading platforms, also announced on their websites on Thursday and Friday respectively that Industrial and Commercial Bank of China and Agricultural Bank of ­China have stopped remittance service for the two websites.

Bitcoin investors usually top up their accounts on trading platforms by remitting money to the accounts of trading platforms.

Media reports said the banks' decision is a response to a notice by ­China's central bank that was released last year.

In the notice released on December 5, 2013, the People's Bank of China (PBC) banned financial and payment institutions from establishing any Bitcoin services as the digital currency carries high risks.

The PBC ordered these institutions not to buy, sell or facilitate transactions of Bitcoins, including settlement service for Bitcoin trading.

In March, some media reports said the PBC would ban all Bitcoin transactions by April 15 but the PBC clarified on its Weibo account on March 21 that it was a "false report."

Even if all commercial banks stop providing services to Bitcoin platforms, transactions will still continue since there are many other ways to avoid the ban, Li Chao, an analyst with consultancy iResearch, told the Global Times Tuesday.

According to the websites of Bitcoin trading platforms mentioned above, they still have accounts avai­lable for remittance in other commercial banks.

On some platforms, such as okcoin.com, investors can top up their accounts by buying top-up codes sold by third-party agents and then fill in the codes on trading platforms.

Bitcoins are traded in a global market, Li said, noting if the transaction cannot be done with renminbi, investors can turn to overseas trading platforms and other currencies.

A full-time Bitcoin investor surnamed Yang also told the Global Times Tuesday that without the banks' services, investors can resort to overseas trading platforms although they are inconvenient.

Without the banks' services, some speculators who do not have enough knowledge in virtual currency may give up Bitcoin, reducing risk of blind investment, Li said. Faced by obstacles in converting currencies to Bitcoin, trading platforms may seek to develop related products such as ATM for Bitcoin, Li said.

Posted in: Industries

blog comments powered by Disqus