PBOC Orders All Chinese Banks And Third Party Payment Processors To Close Accounts Of Chinese Bitcoin Exchanges by 4/15

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Original Chinese article here.

English article by Caixin.

Caixin is a trusted Chinese financial news source.

Ties to the 3/21/14 Sina.com FUD incident

In contrast to the 3/21/14 incident mentioned by OKCoin, this news was broken by Caixin not Sina.  More importantly, the original article has not yet been rescinded.  In the original rescinded Sina article that turned out not to be true, it was claimed that on 3/18/14 a document was released that would have banned Bitcoin transactions in China by 4/15/14.

The PBOC took to Weibo to announce that:

“Regarding the PBOC statement issued on 3/18 requesting all bitcoin transactions to be halted before 4/15, those close to the regulatory body told Sina Finance on Friday, the PBOC did issue a document, but it was not to ban/halt bitcoin transactions, instead to strengthen regulatory oversight of bitcoin transactions, circulation and redemptions.”

As CNYes puts it,

但據財新記者確認,央行《通知》確有其事。只是當時消息傳播有誤,央行不是禁止比特幣平台交易,而是禁止銀行為比特幣交易平台提供開戶、支付、清算等服務。央行當日官方微博有烏龍之嫌,因為即使是央行內部,當時了解這份《通知》存在的人也十分有限。

However, according to Caixin reporters, the alleged “notice” has authenticity.  Simply put, the initial break of the news was hazy, the central bank  wasn’t pushing for a ban on Bitcoin, but rather to prohibit banks from providing Bitcoin Exchanges with accounts for payment, clearing, or other services.  The Central Bank’s official Weibo message is also hazy, because even within the central bank, those that initially understood the “notice” were limited.

 

Original Article

According to Caixin reporters, The Peoples’ Bank of China released a separate report to branches around the country in mid March.  The title of the report was this: 关于进一步加强比特币风险防范工作的通知, or the Notice on Further Strengthening Bitcoin Risk Prevention Measures.

This document requires all Chinese banks and third party payment processors to shut down all trading accounts associated with the listed 15 Chinese Bitcoin and Litecoin exchanges by April 15th.  In the meantime, the Chinese Bitcoin exchanges listed will still be able to withdraw cash from these accounts, but they will not be able to recharge them.

PBOC

The article was written by Caixin’s 张宇哲 and 李小晓 and has been spread on Yahoo, Sina, WantChinaTimes, and the majority of Chinese news outlets.   This bad news comes on the heels of the American IRS finally releasing Virtual Currency Guidance.  A double whammy, for those keeping track.

The Chinese reporters noted that this new document from the People’s Bank of China (PBOC) brings the hammer down hard on Bitcoin Exchanges in the way that was hinted in the now infamous Notice No. 289 from 2013.  English translation provided by BTC China.  Before, Chinese exchanges found ways to get fiat into their exchanges with vouchers provided by some third party payment processors, now this is expressly illegal.  Also expressly illegal, is using the Bitcoin exchange’s CEO’s personal account to provide fiat services through the Chinese banks.

The article goes on to summarize the tumultuous history of Bitcoin in the Chinese observer’s eye.  From the run up in exchange rate largely attributed to Chinese exchange action in the last months of 2013 to the unceremonious shuttering of Bitcoin exchanges from Vircurex to Mt. Gox.  It will be interesting to see what new schemes and methods Chinese Bitcoiners come up with to circumvent their oppressive central bank.

The PBOC notice has not yet been made available to the public.  However, once it is you will undoubtedly find a good English translation of it up on BTC China’s website.

The People’s Bank of China document specifically lists 15 Bitcoin exchanges that must comply with this new ruling:

比特币中国(BTCChina)

Huobi

Okcoin

Fxbtc

比特币交易网

中国比特币

btc100

比特儿

808比特币

比特时代

牛币网

比特币国际

天和比特币

42btc

btc star

 

Editor’s Note: The legitimacy of the Chinese article is being questioned. OKCoin has posted on their Weibo this message:

融资融币的规模OKCoin尚未大量开通,风险规模尚在可控范围内。今天凤凰科技的新闻发布后,为 了防止类似3月21日假消息出来时的用户量暴增,我们已经加派了人手,用来应对可能出现的交易量暴增的情况。人民银行的网站里没有相关的新闻发布,谴责利 用重要媒体散步假消息的行径。OK将紧密关注。

In order to prevent users explosion like last time when fake news jumped out on 21 March, we have already deployed the manpower to deal with situations that arise. There is no related press release in the website of People’s Bank of China. We condemn the use of important acts of false news media for a walk. OK will pay close attention.

A smaller Chinese news site claims that BTCTRADE’s and Huobi’s CEOs both reported that they were just seeing this news as well and that they hadn’t heard anything about it.  BTC38 has taken directly to Reddit to report that they haven’t received a statement from the People’s Bank of China.

I just want to note that the document in question, the notice, allegedly went from PBOC to banks and 3rd party payment processors, not the Chinese exchanges, and not to the PBOC’s website either.

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About The Author

Avatar of Caleb Chen
Editor
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Editor at CryptoCoinsNews.com. Caleb is a graduate of the University of Virginia where he studied Economics, East Asian Studies, and Mathematics. He is currently pursuing his MSc in Digital Currency at the University of Nicosia. Please direct all inquiries and corrections to Caleb at [email protected]

25 Responses

  1. zheron

    Caleb,

    While I think the attacks against you in the comments are a little overzealous, I think what some of these comments are simply trying to say is that it wouldn’t have hurt for you to seek additional and independent confirmation before re-posting what you yourself admit may not be true. Re-posting is just lazy journalism. Do your own research…. If you had tried to seek confirmation from PCOB or anywhere else that would have been noteworthy. When you post stuff like this based solely on the fact that other sites have posted it, without trying to investigate further, it actually does look more like FUD than journalism. Especially when it’s apparent that you are just re-reporting. There does not appear to be any original work in this article at all. No mention at all to calls to PCOB or any of the banks for confirmation of your own.

    But, I get it, I do. You want to ensure that your news site has all the latest morsels, because if it doesn’t people will look elsewhere for the news. But I think you’d have an easier time defending your position if you had done a bit more legwork.

    Anyway, just my 2 cents…

    • Avatar of Caleb Chen
      Caleb Chen

      Thanks for your two cents. My article is a far cry away from a “repost” and it has the most information out of any other news sites’ article on the matter, currently. Including and not limited to all the “evidence” pointing either which way. The PBOC did not reveal the names of the banks that I could contact, and my requests to the PBOC for information from the original Notice 289 are still unanswered, I wasn’t going to hold my breath for a response this time.

      There is original work in the article, whether you or others can see or appreciate it or not.

      I can see some people taking issue with the title, and I understand that.

      However, I’m sticking by the article.
      Again, this is hardly a repost…

      • zheron

        I see. Well, perhaps you should have mentioned that you had tried to reach the PBOC in your article and that they had not responded for comment. If you did, I must have missed it. That would certainly have improved my initial impressions of your article.

      • Avatar of Caleb Chen
        Caleb Chen

        I didn’t, you didn’t miss it :).

        I’m always wary of including that line: “____ didn’t immediately respond for comment” because it is almost always the case that readers will take the silence to mean something else.

      • Cos

        Cebel, try not to start news with such aggresive titles, most of people are reading only titles and few first sentences.

  2. Lycan

    This is sad that Cryptocoin News is spreading FUD just to get ahead of the curve. Be more judicious.

  3. Umlat

    I really home this is not another FUD. I have seen you guys trying to manipulate the market by endorsing specific coins/exchanges in the past and I did not like it at all. This is highly unprofessional and makes your news even less trustworthy.

      • DeSpade

        We do not ignore them, we realize that every one is an indication that we can no longer trust your reporting on the subject of say mincoin because you now have an economic interest in it. How do you imagine you can remain impartial while endorsing one coin over the other? Is it your goal to be in industry shill like one of those marketwatch pumpers?

      • Avatar of Caleb Chen
        Caleb Chen

        Seriously, do you see the Mincoin ad anymore? Have you ever seen me mention it, ever? Is there an altcoin currently being advertised on this website?

    • Avatar of Caleb Chen
      Caleb Chen

      I’ve updated the post with the relevant denials from 3 Chinese Bitcoin Exchanges. The fact of the matter is, the document (real or not) was sent to banks not the exchanges, they wouldn’t have a say in the closing of their accounts.

      The news is up on China’s most popular news sites. Time will tell whether or not the PBOC statement to banks and third party payment processors actually exists or not, and rest assured we will report it.

      • someone

        So…why do you help DDOS FUD attackers by spreading their false rumors?

      • woox3rpt

        Good piece of journalism, please keep updating it with info, I’ve been looking for this today for quite a while as prices are going crazy

      • MayorLar

        My sources in China says this is not true. I guess we will know by the middle of April when China hints at the gold standard for its currency.

  4. John Marcus

    This is becoming a weekly occurrence. Next time you read a tweet or a news post, even one that looks official, claiming China is doing ANYTHING against Bitcoin …. wait. Within a few hours, it’ll likely be proven as FUD. There are a lot of people manipulating the market at the moment to get cheap coins, and it’s working.

      • John Marcus

        You can’t prove a negative. The burden of proof is on those making the claim, not the reverse.

        This is like reporting a rumor that Facebook is facing bankruptcy, then (when told it’s just FUD) saying “news hasn’t been proven as FUD just yet”.

      • Avatar of Caleb Chen
        Caleb Chen

        No, this is reporting a major and credible news source’s article, then presenting all the facts available surrounding the incident so the readers can form an educated opinion by themselves.

    • woox3rpt

      “You can’t prove a negative.”
      I’ve heard that one before too many times, it’s bulls**t (just so you know, so you can drop it as it only makes those who say it look silly) and frankly I would dare someone to prove that a negative cannot be proved (after all they’re making the claim).

      “The burden of proof is on those making the claim, not the reverse.”
      If other parties take it upon themselves to find proof (like in this case) then it’s certainly not just on those making the claim.
      You’ll find out furing your life that sometimes we have to look for proof for the claims of others because their claims being true is a very likely scenario (like a bitcoin ban in a bitcoin hostile territory) and the consequences of that are too enormous to disregard.

  5. DJ

    they cant stop the world, they cant stop person to person and they cant stop international spending…. in all honisty, I believe a fool move like that is just what the diplomatic world needs, it will cause a ripple in the China’s economy. I am going to guess they got some people with IQs over 130 in Red China they may sway them the other way… I kinda hope they do, will b nice to watch that ripple grow china. Chinese Economic Rumble will sure to follow.

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