Chinese Bitcoin exchanges resume trading, price begins to go up

In the early part of February of this year, Chinese Bitcoin exchanges were forced to stop withdrawals as the People’s Bank of China (PBoC) wanted to inspect them for regulatory compliance. Four months later three big Chinese Bitcoin exchanges have now resumed trading.

The announcement came from a correspondent on Twitter who said Chinese exchange BTCChina resumed withdrawals 12 hours ago, which they confirmed via BTCChina customer service personnel.

Reuters also reported early this morning that BTCChina, OKCoin, and Huobi have all resumed withdrawals. Reuters said,

While withdrawals were suspended, investors could buy and sell bitcoins on Chinese exchanges but were barred from transferring them or downloading and removing them.

One of the industry sources said the decision to resume withdrawals was made after the central bank had signaled that it was not forbidden. BTCChina and OkCoin were allowing customers to withdraw a maximum of 10 bitcoins a day, the source said.

It remained unclear when more formal regulation of the industry would begin, the person added.

The market has reacted favorably

As the withdrawals from the exchanges has resumed, trading in China has picked up which is helping to drive the price globally. The renewed confidence from Chinese traders is rallying the price, which up over $200 USD since yesterday.

In the chart pictured above, you can see that in the past day the price has began to rise. The price at the time of this writing is sitting at $2439.

May brought exemplary gains

May was a record month for Bitcoin. When the month started the price of Bitcoin was sitting around $1387. As the month came to a close yesterday, the price was $2317, a price increase of $930.

The spike today from the Chinese exchanges may only be a part of the upcoming increase, if Vinny Lingham has anything to say about it. Lingham told us last week that the price is already potentially heading toward an all time high of $3800.