[2017-03-21]Bitcoin Withdrawals Expected to Resume As Chinese Exchanges Ask User

[bitlamp]

https://cointelegraph.com/images/725_Ly9jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy8zNDdjZDE4OWFjMTBhYjdkYzExMWYxYmU1Njc2NDE1ZS5wbmc=.jpg

Chinese exchanges have begun requiring customers to provide details of the source of cryptocurrency funds and where they will be withdrawn to.

The information, a first for the Chinese cryptocurrency market, suggests exchanges will shortly re-allow Bitcoin withdrawals after a month-long pause.

In a letter from one exchange, Huobi, translated by local news resource cnLedger, reference is made to “AML regulations by government departments” as the root motivation for requesting the details.

The letter states:

“According to AML regulations by government departments including the Central Bank and China Banking Regulatory Commission, you are required to provide explanation of the sources of your funds, and the destinations of the crypto-coins you withdraw.”

In a curious measure in terms of security, customers appear to be required to turn over exchange login details as part of the procedure.

In terms of withdrawal “destinations,” bank account information must be supplied, along with “explanations of the sources of the funds transferred” and “relevant proof that can back up [the explanations].”

CnLedger stresses the information is as yet unconfirmed.

LocalBitcoins activity
Chinese Bitcoin investors have renewed trading activities on alternative resources such as LocalBitcoins over the past week ahead of likely regulatory movements.

LocalBitcoins trading remains unregulated in China, the market setting constant new highs week on week in the seven days to March 18, transferring over 60 mln yuan.

https://cointelegraph.com/news/bitcoin-withdrawals-expected-to-resume-as-chinese-exchanges-ask-users-for-funds-info

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[Kprawn]

The Chinese exchanges will never see any kind of significant volumes if they implement these "silly" requirements. I would much rather trade

in person with people and bypass all these shitty regulations. Bitcoin needs pseudo-anonymity to protect their financial privacy... if you do not

have that, you would be better off using the Yuan or whatever currency the government want to force on their citizens. 

[richardsNY]

The Chinese exchanges will never see any kind of significant volumes if they implement these "silly" requirements. I would much rather trade

in person with people and bypass all these shitty regulations. Bitcoin needs pseudo-anonymity to protect their financial privacy... if you do not

have that, you would be better off using the Yuan or whatever currency the government want to force on their citizens.  

It's not for nothing that peer to peer trading has been more popular than ever before in China. It's obviously very easy to just buy from an exchange, but people aren't interested in going full naked when it comes to their private information, and thus head over to an alternative way of obtaining Bitcoin. But does this really come as a surprise? It's China that we are talking about after all -- China goes full paranoid mode with everything.

[Technicality]

Fortunately exchanges aren't the only way of buying Bitcoin, and it's not 100% relevant to people's privacy.

Most people who put large amounts of money into exchanges are professionals who have money in other things as well and aren't afraid of giving out personal details as they don't participate in illegal activity.

If people in China want to buy Bitcoin, they can just go elsewhere, like LocalBitcoins, or any other sites or forms of exchange which are not restricted (and even if it's illegal, there will always be a way - Bitcoin hardly has a reputation for 100% legal usage).