Chinese Bitcoin exchange FXBTC has announced that it will seize all forms of operations on May 10 due to the “unprecedented pressure” from the People’s Bank of China (PBOC).
According to the statement of the FXBTC management team posted on its website, the company has been immensely affected by the recent changes in the PBOC policy. This has manifested in its ability to process deposits and withdrawals, which has caused issues and problems with regard to its normal operation.
As a result, the firm has made a difficult decision to shut down a few weeks after the PBOC’s strong push to limit the participation and interaction of the country’s traditional financial services sector with the industry of digital currency had caused the Chinese-based company to freeze new deposits in early April.
During that time, FXBTC halted certain trading services, including debit-card deposits while temporarily suspending all withdrawals.
The statement also mentioned that the firm has managed to continually receive support from its customers even with only a year and a few months of stay in the industry. However, it emphasizes that a small Bitcoin exchange will remain immobilized under the strict regulations of the PBOC regarding digital currencies.
With its trading services going offline, FXBTC advises its clients to withdraw their remaining funds before the site is permanently shut down.
On another note, the increase in Bitcoin withdrawals from the firm has affected the Bitcoin price in the market as the virtual currency continues to struggle in clearing the $450 marker. As such, users worldwide may have to expect the value to stay low until the situation between PBOC and digital currencies eases off.
Meanwhile, FXBTC was not the only Bitcoin exchange in the country to have been affected by the strict PBOC policy regarding digital currencies. In late April, BTC China, one of the largest Bitcoin exchanges in China, was also forced to suspend RMB recharges or deposits into its trading platform.