Bitcoin/USD plunges to $450 as BTC China shuts out yuan deposits

on Dec 18, 2013
Updated: Oct 21, 2019

**, Wednesday 18 December:**

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The BTC/USD has today slumped on the Mt Gox exchange to a one-month low of $449.80 on news that the world’s largest bitcoin exchange, BTC China, has stopped accepting deposits in Chinese renminbi (RMB).
“This morning, we got notice from our third-party payment provider YeePay that it would cut off deposits for us at 12 noon and sure enough, we got cut off today,” said Bobby Lee, CEO of BTC China. “Right now we, as a bitcoin exchange, have suspended taking all deposits in RMB.”

Lee stressed that BTC China clients are able to withdraw RMB and that there is no need to panic on that score because “all the money is safe”.
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YeePay’s dramatic decision comes after a meeting between the People’s Bank of China (PBOC) and third-party payment firms on Monday, in which the central bank ordered the companies to stop doing business with bitcoin exchanges from 31 January 2014. Earlier this month, local financial intermediaries were told not to deal with bitcoins but that edict apparently didn’t prevent Chinese speculators from depositing RMB at exchanges over the counter. BTC China’s shut-out of renminbi deposits effectively eliminates that option.

Meanwhile, the PBoC’s website was earlier today reported to be under fierce cyber-attack. Local media are speculating that aggrieved bitcoin speculators are behind the attack.
Yesterday Denmark’s Financial Supervisory Authority issued a statement warning Danes on the risks associated with the use of virtual currencies. The statement raised similar red flags as had hitherto emanated from the European Central Bank and the Dutch banking regulator but the FSA shared that bitcoin entrepreneurs looking to establish exchanges in Denmark won’t need government approval.
The Danish agency added that bitcoins are increasingly being accepted as a payment method, in a statement whose tone was noticeably more relaxed than the prior European pronouncements on bitcoin.


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