The Chinese central bank’s Bitcoin crackdown, first signalled in December 2013, is coming to fruition as the middle kingdom’s Bitcoin exchanges begin halting withdrawals.
The FXBTC exchange has posted a notice saying that it received the instruction by telephone as part of the central bank’s “Bitcoin risk prevention work”, adding that commercial banks and third-party payment institutions have been told they “may not provide clearing services of Bitcoin businesses.”
FXBTC’s notice, here (in Chinese), says it decided as of April 3 to “no longer deal with bank recharge after Sunday, [and] suspend bank card withdrawals”.
Exchange BTC38 has reported similar instructions here (also in Chinese), and has decided to suspend third-party payment and bank card recharges. The exchange reassures users that it has assets greater than its customers’ Bitcoin reserve: the suspension, it says, won’t risk the loss of users’ funds.