Chinese Bitcoin Exchanges Inch Closer To Resuming Withdrawals

By March 23, 2017Bitcoin Business
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Chinese Bitcoin Exchanges Inch Closer To Resuming Withdrawals

It appears the Chinese bitcoin exchanges still have some work cut out for them. Even though things are set in motion to resume bitcoin withdrawals once again, Huobi is looking to implement some drastic changes. To be more specific, there is a draft circulating online explaining how customers would have to provide details for their fund sources and withdrawal destinations.

Exchanges Take AML Very Seriously

It is important to keep in mind the document floating around on the internet is still a draft.Huobi is contemplating to implement additional KYC and ML features moving forward. To be more specific, the company would start asking how users obtain their funds to buy cryptocurrency – or exchange it to fiat – and how they will be using it moving forward.

With this step, we expect #bitcoin withdraws from major exchanges become available soon.

— cnLedger (@cnLedger) March 21, 2017

Everyone is well aware of how the Chinese exchanges will need to implement additional AML requirements in accordance to the PBoC guidelines. Customers may be forced to provide a screenshot of their bank account showing a detailed list of historical transactions. Moreover, the company wants to gain insight into the bank transfer records for a transfer to Huobi, where the transferred money came from, and any proof to back up these claims.

It is evident Huobi – and possible other exchanges – wants to prevent dealing with tainted funds. While some people may find it more difficult to prove the source of their wealth, it should not be too hard to find the documents required. Providing the evidence to back up these claims may be a different matter, though. If someone borrowed money to spend on buying bitcoin, it can be difficult to provide evidence of such a transaction. Rest assured this will have a minor impact on the bitcoin trading volume in China moving forward.

What is even more intriguing is how the document mentions how people need to explain how they want to use cryptocurrency. Whether that is in the form of an investment vehicle, arbitrage, or any other purpose, it will need to be declared officially in the future. All things considered, none of these changes are deal breakers. That said, some people may find this ordeal too cumbersome to deal with it and not buy bitcoin as a result.

Despite these changes, the most important thing to remember is how Chinese exchanges are getting close to resuming bitcoin withdrawals. This process has been going on for quite some time now, yet it appears the exchanges are getting closer to finding a solution. Implementing new AML requirements is not an easy feat by any means, and the process takes a lot of time.

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.

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