Chinese Exchanges Resume Bitcoin Withdrawals After Suspension
Major Chinese exchanges Huobi and OKCoin resume Bitcoin withdrawals after months of regulatory suspension, signaling a partial easing of earlier restrictions.
On May 31, 2017 two of China’s largest cryptocurrency exchanges, Huobi and OKCoin, resumed Bitcoin withdrawal services after pausing them for several months in response to regulatory work and banking restrictions. The suspension had been a major impediment for domestic traders, creating liquidity bottlenecks and complicating on-ramps and off-ramps for Chinese users.
The resumption signaled that the exchanges had implemented new compliance and procedural measures acceptable to their banking partners and regulators, at least temporarily restoring a portion of China’s once-vibrant retail and OTC market. The event carried global significance: China accounted for a substantial share of global trading volumes in 2017, so any operational change in Chinese venues had ripple effects on price discovery and liquidity worldwide.
While withdrawals resumed, the episode highlighted the uncertain regulatory environment in China and the fragility of centralized exchange operations when dependent upon traditional banking relationships. Market participants responded cautiously, and some international traders shifted attention to non-Chinese venues as geopolitical risk and regulatory unpredictability remained salient.The May 31 resumption would be followed by further policy shifts in subsequent months as China moved toward stricter measures on exchanges and ICOs, but that interim reopening provided temporary relief to many traders.