BTC China is the world’s largest bitcoin exchange. They have now started allowing users to purchase the digital currency with Chinese Yuan again after a ban. This is significant news as BTC China stopped accepting deposits in Renminbi last month, because of a memo warning national financial institutions not to trade in bitcoin issued from the People’s Bank of China. That decision was the trigger to fire off a massive drop in bitcoin’s value. This decision also damaged Bitcoin’s public image.
Bobby Lee, BTC China CEO, told the Wall Street Journal that the exchange started accepting Renminbi again on Thursday after studying the PBOC memorandum and ascertaining that it was legal to accept deposits and then transfer money into customer accounts, despite the fact that the banks managing those accounts cannot conduct any business in bitcoin.
Coindesk and Reddit users picked up on BTC China’s decision, regardless of the exchange trying to keep it low profile. BTC China has still not made an official announcement and they timed the change to coincide with the Lunar New Year holiday, when all trading volume is low. Even with this news coming out, it is still far too early to ascertain what impact BTC China’s decision will have on the value of bitcoin.
Bobby Lee informed WSJ that BTC China, which has just closed a $5 million Series A round from Lightspeed Venture Partners and Lightspeed China Partners, is being careful because the Chinese government can and may change its policies at any time. “We are definitely in compliance with the Dec. 5 memo, but the government and the government agencies can change the rules anytime in the future. So we are going to take a wait-and-see approach,” Lee told the WSJ.
The Chinese government has previously taken a negative position toward digital currencies before now. Back in 2009 the Chinese government banned the use of another popular digital currency, QQ, for the purchase of real-world items.
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