For the past 18 months, capital outflow is being a massive problem in China. To prevent the flight capital from the economy, China’s central bank, People’s Bank of China (PBoC) is pressuring bitcoin exchange companies. With a view to ensuring compliance, big bitcoin exchange companies took the initiative to block withdrawals of digital currency.
The Central bank of China asked bitcoin exchange companies to take measure to the digital currency exchange. As a result, some of the biggest companies already took initiative. BTC china, world’s second-largest bitcoin exchange is to impose a 72-hour withdrawal review period. By the same token, the bitcoin battle affected other two largest exchange company. Huobi and OKCoin halted bitcoin withdrawals from their platforms.
3 largest venues’ next move
In addition to showing compliance with the PBoC requirements, the three companies want to develop the system. The system needs an upgrade to obstruct money laundering. Moreover, Huobi and OKChain assumed that the developed procedure may come within a month.
How the clampdown came
PBoC’s such clamp down is a consequence of China’s Forex reserve drop. For the first time in five years, the country’s foreign exchange reserve plummeted more than $3 trillion in January.
However, users needn’t worry, since they can still withdraw and sell bitcoins via renminbi. As of late, China is a significant player in the bitcoin market. Chinese citizens mostly trade and mine bitcoins improvising low-cost facilities.