During this past week the bitcoin world was dominated with speculation around a new “report” that was published in many major media sources but never confirmed by the chinese goverment. “China´s central bank tells banks to close all accounts related to bitcoin by April 15th” that would mean that if you are running an exchange then you could not get a bank account. A defaco end to chinese bitcoin excchanges is and was the speculation. This started a sell off that started slowly and reached it´s “low point” on Sunday when the price went below 450$ across most exchanges.
The rumor still has not been confirmed and it might not be for some time. China is ripe with bank runs, in small cities (small for China) there have been bank runs in the past weeks. With a big rulling -against- bitcoin the goverment would be advertising bitcoin to many people looking or a way to get funds out of the country. China has a history of strictly regulating the flow of funds in and out of it´s boarders and is still trying to figure out what to do in regards to bitcoin. An all out ban might be counter productive and perhaps we are seeing a kind of hush hush way of implementing a defacto ban on bitcoin exchanges. The exchanges themselves have not been notified by the authorites, however that does not rule out that the banks have been contacted and that the exchanges will be contacted in the future. In a reaction to all this the exchange BTC-E has added Yuan “offshore yuan”.
China bank runs fuel bitcoin ban
What will happen in April? More Chinese bank runs? An outright ban on Bitcoin? Chinese exchanges moving to Hong Kong?