Good news came out of China today as BTC China the longest-standing bitcoin trading platform in China could resume trading in the Chinese denomination of the yuan. This came due to pressure on a third-payment processor from the country’s central bank, reports CNBC.
The world's largest bitcoin exchange, according to Bitcoinity.org. stopped accepting trades in December denominated in the yuan due to pressure on third-third party payment processor from the country's central bank.
However, Bobby Lee, CEO of BTC China told CNBC via telephone that the decision has now been reversed, just in time for the Chinese New Year holidays.
‘Everything is hunky dory,’ he told CNBC. ‘Essentially the government never disallowed it.’
In December, China's central bank ordered third-party payment agencies - which provide clearing services for bitcoin exchanges - to stop any ‘custody, trading and other services’ related to the virtual currency. The platforms were told to end working relationships with virtual currency exchanges before the end of January.
Today, however, Bobby Lee told CNBC that the PBoC was actually implying that bitcoin exchanges just needed to register with the Ministry of Industry and Information Technology (MIIT), essentially recognizing currency exchanges as a business category and a legitimate business.
While this period of transition was changing the system of Bitcoin trading, BTC China operated a voucher system in the interim to allow users to redeem their cash, allowing investors to change their bitcoin back into yuan.
BTC China is now accepting yuan deposits via its corporate bank account, but is still not working with the third-party payment processors. Lee said that the deposits meant that trades are a little more ‘cumbersome’ and take a little longer.
Bobby Lee believes that these third-party processors had lost a sizeable chunk of their business due to the ruling, but hoped that in the long term a more formal regulatory statement from the PBoC could allow the two sectors to work together once again.
To view more information about Bitcoin please, see the articles listed below in Author’s suggestions and view the video atop this article how Bobby Lee CEO of BTC China planned the return of Bitcoin in China.