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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags governmentregulationinternetInternet-based applications and servicesBTC ChinaYeePay

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

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?