China's largest bitcoin exchange forced to stop accepting deposits

China has been clamping down on the currency, and has banned banks from trading with it

China's recent clampdown on Bitcoin appears to be forcing the nation's largest exchange to stop accepting deposits, dealing a major blow to the virtual currency in the nation.

The exchange, BTC China, said on Wednesday it could no longer take deposits in Chinese yuan. On the same day, the exchange's third-party payment service notified BTC China that it would stop accepting its customers' deposits.

BTC China's CEO Bobby Lee said he's not been offered an explanation for the service stoppage. However, he pointed to recent Chinese news reports saying local regulators had demanded local third-party payment processors refrain from offering services to Bitcoin exchanges.

"I suspect the rumors are true," he said. "They were told not to do business with us."

Earlier this month, Chinese authorities said they would ban banks from trading in the virtual currency. Regulators point to problems with the volatile price of bitcoins, and how scams have been committed using the cryptocurrency.

The clampdown has sent bitcoin prices plummeting. On Wednesday, BTC China said the virtual currency was trading at 2580 yuan (US$422) per coin, down from 5293 yuan on Monday.

BTC China customers will still be able to make withdrawals, and trade in bitcoins using any Chinese yuan already deposited on the exchange. But the lack of a third-party service prevents new cash from coming into the exchange.

YeePay, BTC China's third-party payment service, declined to comment.

BTC China is looking for new options to allow customers to make deposits. But because the company is geared for China, the exchange is only looking to allow exchanges in the Chinese yuan, Lee said.

Before the clampdown, China had emerged as market where bitcoins were becoming popular as a form of investment. A few tech vendors were even trading in the currency, but have now stopped, citing China's recent move to regulate bitcoins.

Join the PC World newsletter!

Error: Please check your email address.

Tags Internet-based applications and servicesregulationBTC ChinaYeePaygovernmentinternet

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?