Categories: CryptoNews

Hong Kong-based BitVC Exchange Suspends BTC and LTC Withdrawals

A few weeks ago, all Chinese bitcoin exchanges announced they were forced to suspend bitcoin and altcoin withdrawals. This decision was made in lieu of the PBoC regulations regarding anti-money laundering practices. It now appears BitVC, a Hong Kong-registered bitcoin exchange, is going through a similar ordeal.

BitVC Suspends BTC and LTC Withdrawals

The news came as quite a surprise, considering BitVC is registered in Hong Kong. Up until this point, there was no indicating Hong Kong would force local cryptocurrency exchanges to suspend withdrawals for an undisclosed period of time. However, the company alerted all customers about this decision earlier this morning.

It appears the company is also affected by the PBOC‘s decision to crack down on AML practices. It is worth noting BitVC is an exchange operated by Huobi, which may explain why they fall under Chinese regulation. Moreover, it is possible BitVC has a principal place of business outside of Hong Kong, which would explain why the PBoC has so much sway over this company’s day-to-day operations.

What is rather disconcerting is how the message sent out to all BitVC users mentions how bitcoin and litecoin withdrawals are suspended “from now on”. Instead of giving users an idea as to how long the process will take, they seemingly hint at how the withdrawal service may never be resumed again. Then again, Chinese exchanges have not been given an official ETA as to when withdrawals will be resumed either.

Related Post

While it is commendable the PBoC is taking anti-money laundering requirements so seriously, it goes to show a lot of Asian cryptocurrency exchanges are not prepared for it. Consumers can still exchange funds to local currencies if they need to do so, but they are effectively unable to withdraw their [recently] purchased cryptocurrency balances. It is possible this will create some minor volatility across the exchanges, but for now, there is no impact whatsoever.

That being said, it would be a bit less troublesome if these exchanges could give customers a heads up about what is to happen. Suspending withdrawals out of the blue is never a popular decision, yet that seems to be the preferred cause of action by Chinese and Hong Kong exchanges right now.  Earlier this year, the company announced the addition of trading fees to their platform well in advance, yet when it came to suspending withdrawals, they remained tight-lipped.

It is evident the cryptocurrency landscape is changing drastically in Asia. With the PBoC cracking down on money laundering, virtually all cryptocurrency platforms have been forced to announce changes. Suspending margin trading and enabling trading fees were just the first steps. Actively preventing withdrawals is a very troublesome development, and we can only hope BitVC will be able to resume its services sooner rather than later.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

WIF Set to Overtake BONK? Lunex Soars with 100x Potential in Altcoin Season

As altcoin season heats up, all eyes are on the rising stars—especially Lunex, which is…

5 hours ago

Binance Coin Price Dips: BNB Holders Rush To Lunex Presale To Hedge Their Long Positions

While the broader market witnessed a notable upward movement, Binance Coin (BNB) experienced a decline…

5 hours ago

Crypto Stalwarts Forecasted 800% Growth in Innovative Projects: VeChain, Rollblock and Polkadot!

This blazing crypto bull run has investors looking for the next top altcoins set to…

5 hours ago

Dogecoin Price Set To Recreate 36,000% Rally From 2021 After Pennant Formation

The Dogecoin price is back in the limelight, captivating the crypto world with its recent…

5 hours ago

Is XRP About to Explode? How Trump’s Victory Is Affecting XRP Price Amidst JetBolt Growth

Ripple’s XRP showed a 68% price increase in the last 7 days following Trump's victory,…

5 hours ago

Ethereum Down While Bitcoin, Solana, and JetBolt Skyrocket In End November 2024

Ethereum stumbles as Bitcoin surges past $97K, Solana eyes new highs, and JetBolt’s presale shakes…

8 hours ago