Previously we reported on the freezing of Bitcoin assets and withdrawals in China as exchanges stopped trading amid a decision from the central bank. While one has now been announced it couldn’t be further from being restrictive and counter intuitive as new regulation demands exchanges comply with AML policies in order to remain in operation. Complying with new policies, it is hoped exchanges can safely restart sending out withdraws which have now been pending for over a month.
According to AML regulations by government departments including the Central Bank and China Banking Regulatory Commission, you are required to provide explanations of the sources of your funds, and the destinations of the crypto-coins you withdraw.
Huobi, one of the country’s largest exchanges has also announced it will require information on the source of funds when withdrawing Bitcoin or depositing. While it has been clarified this process will only be carried out for customers suspected of money laundering practices, the infringement of users privacy has caused uproar.
To conclude, while withdrawals in China are on course to be opened again, the added AML and KYC procedures will be onerous to the majority of users. While Bitcoin funds will come under added scrutiny many customers will find they have lost the privacy and anonymity provided by the Bitcoin infrastructure. The fact that users details sent to the exchange will be sent directly to the national departments further added concern as personal data will be stored indefinitely by the state.
You can purchase Bitcoin via the NairaEX exchange, Nigeria’s leading exchange without the need to provide personal details and identification, compared to the new Chinese regulations Nigerians can breathe a sigh of relief.