It is not surprising various Chinese bitcoin exchanges make a joint statement at this crucial time in cryptocurrency history. Albeit most platforms already had their withdrawals suspended for quite some time, it looks like that period will be extended. OKCoin, BTCC, and Huobi all made similar statements as part of a coordinated PR campaign to let the public know about this withdrawal delay extension.
More Withdrawal Delays For Chinese Exchange Users
About a month ago, the PBoC sat down with various Chinese bitcoin exchange owners to discuss their guidelines regarding AML. At that time, it was decided nearly all exchanges would delay bitcoin withdrawals for a month until the companies could get everything sorted out. That decision is anything but a popular one, yet people understood the reasoning behind it. Ever since that time, no one has made a big fuss about these withdrawal delays, which is somewhat surprising.
Fast forward to today, and an update regarding the withdrawal delays has been provided by these Chinese exchanges. Unfortunately, the news is not all that positive, as it appears further delays are in order. OKCoin, BTCC, and Huobi have all announced they will delay the withdrawals once again, as they need to make some more changes based on feedback provided by the regulatory authorities. This is not entirely unexpected given yesterday’s PBoC statement.
Since none of the Chinese bitcoin trading platforms want to violate national anti-money laundering laws and regulations, the companies will make additional changes. OKCoin, BTCC, and Huobi all want to conduct their business in accordance with national regulation, which means they will have their work cut out for them. All internal systems of these three exchanges will be upgraded further in the coming weeks to ensure they are fully compliant with the law.
It is important to note these extended withdrawal delays are not a form of punishment handed down by the PBoC by any means. The central bank of China has indicated they have concerns regarding AML precautions taken by some exchanges, yet they will not put any company out of business for doing so. Instead, these trading platforms will need to implement some changes that will allow them to conduct their business in a proper manner moving forward.
While some people will see this news as a reason to sell off their bitcoin, the impact of this withdrawal delay extension will be minimal. It only affects Chinese exchanges on the .cn domain name, rather than the likes of huobi.com and OKCoin.com. Moreover, users will not lose any funds during this process, as they can still convert bitcoin to CNY if they feel the need to do so. That being said, the “sell off” when the first withdrawal delays were announced was rather minimal, thus this situation should be no different by any means.
All affected Chinese exchanges will do their best to ensure services are restored as quickly as possible. Once regulatory approval has been granted, bitcoin withdrawals will be made available once again. All things considered, the news will cause some minor annoyances, but will not diminish the demand for bitcoin in China by any means. It is normal the government wants to ensure bitcoin is not used for money laundering and funding terrorist activities. In the long run, this delay will give bitcoin more legitimacy in China, which can only be a positive thing.
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