BTC38 Suspends RMB Deposits, Cites China Central Bank Guidance

Citing a shift in policy from the PBOC, Chinese exchange BTC38 announced it will suspend trading effective 2nd April.

AccessTimeIconApr 2, 2014 at 3:41 p.m. UTC
Updated Sep 11, 2021 at 10:36 a.m. UTC

China-based bitcoin exchange BTC38 announced to its users that its renminbi deposit services will be suspended following a shift in policy from the People's Bank of China (PBOC), the nation's central bank.

seemingly confirms earlier reports that the PBOC would seek to tighten its enforcement of earlier guidance issued in December, thereby blocking its domestic banks from working with digital currency companies.

Further, the release corroborates recent statements by BTC China CEO Bobby Lee, who has suggested that the PBOC has been seeking to implement a "stricter interpretation" of its past ruling.

Informal translations of the notice suggest that BTC38 has confirmed that the rumors are true, as it stated that it received the news from banks and third-party payment providers.

Read the statement:

“We will strictly comply with the notification provisions of the central bank to suspend the Renminbi recharging service, whereas, the following two services - Renminbi withdraws and the recharging and withdraw of virtual currencies, are still completely normal.”

The comments suggest that trading between digital currencies will continue via BTC38, but that no fiat-to-digital currency conversions will be allowed on the platform.

on BTC38 indicates that the exchange has been active since October, and that the majority of its traffic comes from China, though it does support some US users.

No further details

Following this statement, BTC38 stated that its assets have not been affected by the announcement and that it still has more than 100% of user reserves in an effort to downplay potential concerns about its finances.

Still, the exchange was not able to offer more details. The company stressed in its posting that it did not have any further comment at this time, and did not indicate when further updates would be available.

Read the statement: "We are temporarily unable to reveal more."

Call for support

The exchange ended its post with a call for the industry to come together amid the uncertainty that has caused the price of bitcoin to deflate in recent weeks.

BTC38 referred to the state of confusion, noting that it has "hurt the industry", and called on everyone with a stake in the ecosystem to "resist chaos".

Furthermore, it suggested that it would look to continue to emphasize customer support and focus on the development of the digital currency industry.

CoinDesk is monitoring this developing story, and will post updates as more information becomes available.


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