Plenty of time has passed since we last heard something about the withdrawal situation on Chinese exchanges. Almost all platforms ceased to perform money withdrawal transactions. However, everything points to the possibility of resumption of such operations in June 2017.
With that, three major exchanges will be fined (the amount of fine is not specified for any of them yet). In addition, the regulator companies will impose new models for the exchanges to follow.
BTC withdrawals and new rules
The withdrawals of crypto-currencies were expected to resume in China sooner or later. However, no one knew when exactly it was going to happen. Since PBOC’s interference into AML’s requirements, the situation has changed slightly. At present, the withdrawals are believed to resume in June 2017. The specific details will be announced in the next few weeks.
The withdrawal operations will resume after the new normative regulations come into effect. According to Caixin, the exchange platforms will have to adhere to two new rules. One document is a management guide for Bitcoin exchanges, which sounds rather vague. Another document is related to AML’s recommendations regarding the exchange of crypto-currencies. It was the latter that allowed to guess what would happen in the future.
We can argue this news arrived at the most appropriate moment. Lately, the Bitcoin exchange rate has been surging mind-bogglingly. However, China is no longer the market’s leader. Currently, Japan holds the first place, which should have been expected. However, it’s unclear whether or not the resumption of withdrawals at Chinese exchanges will affect the BTC price. Because users were able to convert BTC to CNY at exchanges during all this time.
Fines for BTCC, Huobi and OKCoin
Unfortunately, it seems some exchanges will be subject to a punishment. For BTCC, OKCoin and Huobi, the punishment will be a monetary fine. This doesn’t come as a surprise as PBOC did hint at the fact some platforms had been violating the AML rules. Nevertheless, it’s unclear what punishment they will face in the end. All the circumstances considered, many will be happy to hear the business is going to be restored in the near future.