PBOC Rebukes, BTC China Halts Chinese RMB Deposits

As a result of the recent PBOC rebuking remarks about banks still funding BTC China, the Chinese Bitcoin exchange company has halted RMB Deposits. The PBOC clarified its position on Bitcoin a few days ago and explained its stance,

“The current level of services that banks and third-party payment processors provide counts as directly providing services to Bitcoin related companies. Online stores and public marketplaces that sell or trade ‘deposit codes’ from Bitcoin exchanges counts as indirectly providing services to Bitcoin related companies.”

The PBOC has said that these types of services must be stopped. Initially, as a result of this announcement, Bitcoin’s price decreased to $450. After the BTC China announcement, Bitcoin’s price is hovering around $440.

BTC China Halts Chinese RMB Deposits

BTC China announced,

Because of this morning’s announcement by the China Merchants Bank, BTC China, in the interest of its users and platforms security, has decided to suspend Chinese RMB recharges (deposits). For subsequent updates, please follow our official website and Weibo account, thanks again for your patronage and support of BTC China #BitcoinAnnouncement#

It should be noted that even though the PBOC has decided to set down harsher rules to Bitcoin companies, the digital currency has not been banned by the Chinese government. In fact, some have suggested that places like Hong Kong might be the best home for Chinese Bitcoin exchanges. Due to the fact that risky, new industries, have been given a chance in Hong Kong, it is hoped that the Chinese government might look the other way and allow Bitcoin exchanges to grow.

Bitcoin Price Reacts

PBOC’s Rebukes, BTC China Halts Chinese RMB Deposits

As a result of both the PBOC’s announcement and BTC China’s announcement, the price of Bitcoin has decreased to around $446. Even though the price has decreased, it is to be made clear that Bitcoin itself is not banned in China. The PBOC, it would seem, is trying to get a handle on the digital currency by setting stricter guidelines for it. At this point, it is difficult for the digital currency to thrive in China, but since it survived the PBOC’s last attempt to set down harsh rules, it could very well survive this one as well.

Image courtesy Bitcoinwisdom