Chinese Bitcoin Exchanges Implement Video Verification to Resume Withdrawals
Recently, a bitcoin user received an email requiring video verification when withdrawing bitcoin at Huobi.
“In accordance to KYC / AML regulations and account monitoring procedures Huobi is subject to, we will initiate video verification at 17:00 Mar 28th (GMT +8), please cooperate to complete video verification as requested then, or it may affect your withdrawals.”
Following Huobi, OKC has also started implementing video verification.
This is the complete opposite of what bitcoin is made for-an anonymous decentralized economy. But can you blame them?
The People’s Bank of China (PBOC) has reportedly sent a draft proposal to Chinese bitcoin exchanges detailing anti-money laundering (AML) requirements and know-your-customer (KYC) system.One proposal outlined in the draft is an on-site verification for opening an account at an exchange, which have been a norm to traditional banks in China.
In early February, three major Chinese exchanges suspended bitcoin withdrawals, supposedly for one month. However, on March 8, they have postponed cryptocurrency withdrawals, announcing at the time that“once approved by the regulating departments, we will resume bitcoin withdrawal services.”
An exchange insider commented that:
“All PBOC what is making sure there are no loopholes. Taking preventive measures, blocking potential possibilities and minimizing risks.”
Now with the addition of video confirmation, China has become one of the most heavily-regulated countries for Bitcoin exchanges. But the silver lining is that if the PBOC and exchanges have finally reached an agreement on AML procedures, cryptocurrency withdrawals should resume very soon.
Furthermore, the introduction of clear rules and guidelines may make way for alternative cryptocurrencies to be added on these exchanges that have, so far, only dealt with Bitcoin and Litecoin.