By
Chimamanda U. Martha
April 3rd, 2024
China’s major cryptocurrency exchange OKCoin has stopped accepting USD deposits, a day after the Hong Kong-based cryptocurrency exchange Bitfinex suspended wire transfers.
OKCoin has announced it will freeze incoming transfers, requesting its users to stop sending wires in fiat currency. The move, according to the exchange, was caused by issues with intermediary banks.
The official statement was released on the exchange users’ dashboards on Tuesday, but was later shared on Reddit.
“Starting from today (April 18, 2017), Okcoin would temporarily suspend USD deposit because of the issues with intermediary banks. Please do not make further deposit [sic] because your wires may be rejected by intermediary banks. We are actively looking for alternatives to resume deposit [sic] as soon as possible. Your current account balance remains unaffected. We are sorry for any inconvenience caused.”
The announcement comes after another bitcoin exchange Bitfinex claimed on Monday that it will stop processing bank wire transfers.
The exchange confirmed: “Beginning April 18, 2017, all incoming wires to Bitfinex will be blocked and refused by our Taiwan banks. This applies to all fiat currencies at the present time. Accordingly, we ask customers to avoid sending incoming wires to us until further notice, effective immediately.”
Bitfinex reported last week that there had been delays in the processing of outbound USD wires to customers and added it is working on alternative solutions to deposit or withdraw in fiat currency.
Last week, OKCoin issued increased guidelines for user regulatory compliance, saying its customers can be subject to enhanced due diligence if their deposit history exceeds $10,000. The exchange, the guidelines read, may require video verification from these customers and require their ID documents, including their passport or driving license.
“Video verification will require a device that has video recording function and access to the internet (e.g. cellphone, laptop, tablet). You will be required to show your legal documents in front of the camera,” the notice reads.
According to other guideline, old Bitcoin and Litecoin single-signature wallet addresses will stop operating from April 23, 2017.
China’s bitcoin exchanges are now facing an increased scrutiny from the People’s Bank of China, which launched a crackdown on local exchanges earlier this year in a move to stem capital outflow. The central bank met with main exchanges to warn them about the need to enforce money laundering and foreign exchange regulation.
In February, OKCoin halted withdrawals in digital currency in response to the bank’s requirements to upgrade its compliance system. The freeze of withdrawals was expected to resume within a month, but the exchange later confirmed the postponement and said they will be resumed after regulatory approval.