- June 8, 2017
- Posted by: Victor Cosmus
- Category: Bitcoin
On May 31, OkCoin, one of the largest Bitcoin exchange markets controlling over 34% market share, resumed withdrawals officially for its traders. BTCC and Huobi the second and the third largest Bitcoin exchanges in China, followed suit by allowing their clients to withdraw their bitcoins.
Being the major players in the Chinese Bitcoin exchange market, immediately after their resumption of withdrawals, Bitcoins price surged, recovering back into $2,400. On a weekly basis analysis, Bitcoins showed almost 3.5% gain, fully recovering from its previous market position correction which led to almost $500 decline from $2,400 to $1,900.
Withdrawal Was not approved by PBoC
An interesting story of this recent resumption of withdrawals by the three bulls in Chinese Bitcoin exchanges, is that it was neither approved nor requested by the People’s Bank of China (PBoC) the Central Bank of China.
The local sources in the country incluiding Huobi, cnLedger, OkCoin, and BTCC came to an agreement regarding Know Your Customer (KYC) and the Anti-Money Laundering (AML) systems update and decided to open withdrawals for all their users.
The resumption by the three market players gave time for the Chinesse Bitcoin exchange market to stabilize and recover in a very short period of time, thus the increased demand of Bitcoins from local users and traders. This demand led to the shoot in price of the Bitcoins.
On the other hand, the market share and trading volume of the Japanise Bitcoin exchange market rapidly dropped and the fact that Chinese traders were purchasing Bitcoins through Japanese exchanges.
From 1st June to 6th June, Bitcoin prices has sustained its momentum for almost six straight days, remaining and stabilizing around the $2,600 region.
New regulatory frameworks and AML/KYC requirements
Mid this month, the PBoC is projected to introduce new AML/KYC requirements and regulatory frameworks for Bitcoin exchanges and investors. This move is expected to influence bitcoin prices come mid this month.