Bitcoin Price Drops 10% as Chinese Exchanges Stop Bank Deposits

Apr 10, 2014 at 08:26 UTCUpdated Jun 11, 2014 at 07:09 UTC. Bitcoin prices crashed today as Chinese businesses began receiving official deposit shutdown notices from banks, confirming recent suspicions of an impending crackdown.

Exchanges will stop account recharging via bank accounts between now and 15th April.

Even though the news has been anticipated for over a week now, bitcoin prices sank under $403 from a high of $450.74 on the CoinDesk Bitcoin Price Index after companies began making public announcements on their sites.

Interestingly, it appears Chinese banks started with smaller exchanges before working up to those with larger trading volumes.

The announcements have all come via the banks themselves, as the PBOC has still not provided exchanges with any official announcement 'on paper'.

"With a heavy heart we make this announcement, that BTCTrade just received a telephone call from our bank the Kejicheng branch of China Agricultural Bank Hangzhou, that if we do not stop using our bank account to conduct bitcoin related businesses by 4/15 our account will be frozen. Therefore, we are forced to stop all RMB deposits by 4/15 midnight, although withdrawals will not be affected at [present]."

BTC China CEO Bobby Lee said his company would not be changing any of its banking arrangements until it receives some form of official notice, which hasn't arrived yet.

"So far, we still have NOT received any official notices from Banks or the PBOC," he said.

BTC38.com, which specializes in altcoin trading, suspended account funding via bank deposits on 4th April.

"OK is always here, rumor-spreaders can leave now, we already have plans for April 15th," said OKCoin's Vice President He Yi. The industry so far has shown nonchalance in the face of previous government bans, whether implied or actual, since last December, and have developed new ways for customers to move money in and out of exchanges without direct access to bank accounts.