Chinese bitcoin exchange OKCoin suspends wire transfers due to banking problems

Leading Chinese bitcoin exchange OKCoin has suspended incoming U.S. dollar wire transfers, sending a shudder through the cryptocurrency community days after Hong Kong-based bitcoin exchange Bitfinex (BTXNA Inc.) suspended all wire transfers.

In an email to customers, the exchange said the move to suspend U.S. dollar wire transfers was temporary due to issues with “intermediary banks,” adding that “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 problem, like Bitfinex, would appear once again to be related to banking issues, however, OKCoin did not specify any particular bank it was having issues with. Bitfinex’s problems arose from Wells Fargo refusing to accept wire transfers from banks acting on its behalf in Taiwan.

According to Coindesk, the company said that it doesn’t currently have a “timeline for reactivation” but it was working to restore deposit functions through alternative channels

OKCoin, along with fellow bitcoin exchanges BTC China and Huobi has struggled of late following an investigation by Chinese authorities into whether the firms complied with local laws on registration and money laundering launched in January. All three exchanges suspended bitcoin withdrawals indefinitely in March.

While there is no suggestion at this stage that OKCoin may be in trouble financially, unlike Bitfinex, their banking problems are not a good look for the company at a time where it is under government scrutiny.

Despite the scare and an initial small price drop, bitcoin rebounded to $1,230.73 at the time of writing, still at record high levels.

Photo: jonrussell/Flickr

The post Chinese bitcoin exchange OKCoin suspends wire transfers due to banking problems appeared first on SiliconANGLE.

Leave a Reply

Your email address will not be published. Required fields are marked *