After more than three months of uncertainty, cryptocurrency traders with holdings on China’s three largest Bitcoin exchanges received welcome news this week when they learned that they will soon be able to once again withdraw their digital currency. That news ends the suspension of withdrawal activity that began in February amid central bank concerns about the exchanges’ compliance with AML/KYC requirements.
Since the suspension of withdrawals began, exchange customers have maintained the ability to buy and sell their Bitcoin. They could not, however, remove that digital currency from their exchange accounts. Most analysts agree that the withdrawal suspension led to the sharp downturn in Chinese exchange trading volume – a downturn that shifted the trading market’s focus away from China as the Japanese and South Korean markets gained greater prominence.
According to Reuters, BTTC’s Bobby Lee today announced that his exchange has started to conduct tests of its withdrawals. The exchange has reportedly upgraded AML and KYC capabilities to comply with existing regulations. News reports also indicate that both Huobi and OkCoin also plan to resume withdrawals this week, which should come as welcome news to traders on those exchanges since they’ve both added Ethereum trading for their customers as well.
Meanwhile, the country’s Bitcoin community awaits new regulations that the People’s Bank of China is expected to unveil sometime this month. Observers have noted that the central bank’s approach to that regulation will likely be a major factor determining the trajectory of Chinese Bitcoin exchange activities in the near future.