Chinese Exchanges Stop RMB Bank Deposit on 15th AprilToday, BtcTrade and Huobi join OKCoin, FXBTC, and BTC38 in announcing an end to their acceptance of Chinese RMB deposits via bank card recharge. However, it is important to remind that Bitcoin is not banned in China, but the operations of Chinese Exchanges will really be more complicated after April 15th, 2014.The Agricultural Bank of China, one of the Big Four Chinese Banks, has begun notifying its Bitcoin Exchange clients of upcoming changes to policy.
The other 3 “Big Four” banks in China are: The Industrial and Commercial Bank of China, China Construction Bank, and Bank of China. By market capitalization, the Industrial and Commercial Bank of China is the largest bank in the entire world, according to Relbanks 2013 statistics on largest banks in the world.The Agricultural Bank of China is the 6th largest bank in the world by the same measure, outstripping all American Banks besides Wells Fargo and Chase.As we wrote last week, Chinese Exchanges might have to move servers and banking accounts overseas. Force is to note that this decision will reduce the access to digital currencies for Chinese people.
China has merely forced Chinese Bitcoin exchanges to operate outside of Chinese banks. China wants to limit the amount of Bitcoins that can be bought by Chinese citizens to a measly $50,000 USD worth annually, thus limiting capital flight by that method.In addition, a post on blogspot suggests that a bank in Australia is closing its banking relation with Australian Bitcoin trading companies.BTC Trading Prices DropThe PBOC additional restriction is now followed by Huobi and BtcTrade ; and we do expect BTC China to follow soon. There is no more doubt about the fact that this hardening concern every Chinese Exchange.Trading Price on Huobi is falling sharply and just broken the RMB 2,500 or $400 support.
BTC/USD on Huobi is now evolving around $396.After a slight rebound back over the $450, BTC/USD has fallen again toward the $400 support to evolve around $415 on BitStamp.Other digital coins are negatively impacted by this news, and LTC/USD is also dropping under the $10 support.Bitcoin Vox AnalystsWe did tweet a BEARISH Alert - Huobi and BTC Trade to halt RMB deposit via banks after OKCoin and BTC38 Huobi < $400 BitStamp < $415 Winkdex < $420 (-7%).BitcoinVox Analysts believe the BTC Price will continue to suffer from the consequences of the PBOC new ruling and BTC/USD might fall to $400. If the $400 support is broken on other Exchanges, the new support will be around $350.
