BTC China restores Bitcoin-Renmibi trading

By VCPOST Staff Reporter

Jan 31, 2014 10:12 AM EST

About a month after it stopped accepting renmibi deposits, BTC China started accepting bitcoin purchases in Chinese yuan again, according to TechCrunch.

BTC China, the largest bitcoin exchange in the world, has stopped accepting Chinese yuan deposits last month because of a memo issued by the People's Bank of China (PBOC). The bank warned financial firms against trading in bitcoin. This decision not only pulled down Bitcoin's value, but also hurt its public image, the report explained.

According to BTC China Chief Executive Officer Bobby Lee, the exchange restored renmibi trading on Thursday after scrutinizing PBOC's memo. They detemined that accepting deposits and transferring cash into client accounts is legal. However, banks managing those accounts will not be able to conduct business using bitcoin, the report detailed.

The exchange has not released an official announcement about this decision. The change was timed with the Lunar New Year holiday, a low-volume period of trading. The impact of BTC China's decision on the value of bitcoin is yet to be determined. Lee told The Wall Street Journal that it is making its moves carefully because the country's government can revise its regulations any time, the report added.

BTC China recently raised $5 million in a Series A funding round led by Lightspeed Venture Partners and Lightspeed China Partners, TechCrunch reported.

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