Bitcoin OTC Service Suspends Trading Citing China Pressure

BitKan, a over-the-counter (OTC) trading service for cryptocurrencies in China, announced today that it will suspend its OTC operations amid growing scrutiny from regulator, a notable development given rumors that OTC markets may be excluded from a possible ban.

In the news post, BitKan said that it would suspend the trading service beginning at 12:00 a.m. on September 14. The suspension will affect both its Web-based and mobile users. However, withdrawals and deposits will remain active, according to the firm.

The statement only noted that the suspension is a result of the joint announcement published by People’s Bank of China on September 4, regarding the ban on illegal initial coin offering (ICO) fundraising and trading activities.

BitKan’s statement explains:

“After the suspension of the OTC service, BitKan’s wallets will continue functioning normally. Deposition and withdrawal of funds will not be affected.”

The service did not say when – or whether – it would resume its OTC trading. However, the disclosure nonetheless highlights the escalatingimpact the Chinese’s governments recent policy moves have had on the local cryptocurrency industry.

In the past few days, reports have emerged claiming that China is on the cusp of a blanket ban on exchange-based cryptocurrency trading. Yet thus far, major exchanges in China have all said that no official notice has been received from regulators.

BitKan did not respond to inquiries regarding whether it has received any notice from regulators, as well as when and whether OTC trading will resume.

Crosswalk sign image via Shutterstock

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Source: Coindesk