China Orders Closure of Bitcoin Exchange Accounts
The People’s Bank of China (PBOC) orders commercial banks and payment processors to close the accounts of over 15 Bitcoin exchanges.
On April 1, 2014, reports surfaced that the People’s Bank of China (PBOC) had instructed domestic commercial banks and payment processors to shut down the accounts of more than 15 Bitcoin exchanges by April 15. The move followed months of tightening restrictions on digital currency activity in China, which had quickly grown into one of the largest markets for Bitcoin trading.
While the PBOC did not ban Bitcoin outright, the decision effectively crippled exchange operations by cutting off their access to the traditional banking system. This forced many Chinese exchanges to rely on workarounds, such as third-party payment providers, but those too came under scrutiny. The announcement caused significant market turbulence, with Bitcoin’s price dropping sharply as global traders feared that the Chinese government’s crackdown might spread.
Despite the restrictions, underground and peer-to-peer trading thrived, highlighting Bitcoin’s resilience but also its dependence on regulatory clarity.The April 1 directive set the tone for years of uncertainty in China, as the government alternated between crackdowns and toleration of crypto activity.