One of China’s leading exchanges has announced it expected to resume withdrawals of bitcoin shortly, pending final approval from the Chinese government.
Huobi, part of China’s so-called Big 3 along with OKCoin and BTCC, had placed restrictions on any withdrawals, following increased pressure from regulators in recent months.
The limitation on withdrawals and other restrictions were rolled out initially as a temporary measure while regulators investigated the market for bitcoin exchange.
The suggestion that these limitations may not have been temporary has been attributed in some quarters to yesterday’s sharp decline in the bitcoin market, which saw the currency shed some five percent of its value before recovering some ground later in the day.
Now, with normal business set to resume after final clearance from Chinese regulators, the firm can finally put investors’ minds at rest over the future of their platform, and the business of bitcoin exchange in China.
Huobi has said it has revamped its systems, in line with new requirements from regulators. It hopes the new update will be sufficient to satisfy regulators and, in turn, to reopen normal trading activity through their platform.
Having put a stop to normal withdrawals in early February, the company advised users in a statement released today to “stand by” for an announcement coming soon.
It comes at a time where Chinese regulators and other agencies, including China’s central bank, have expressed concerns about the bitcoin market.
As it is a new and emerging financial space, regulators had yet to form their own approach to regulation and oversight.
With regulators pledged to play a more hands-on role in the development of the industry in the months and years to come, Huobi’s announcement is a hugely positive sign that normal business could be set to resume sooner rather than later.
This will come as some comfort to investors with holdings in bitcoin who have been unable to withdraw their funds over the last month or so, as well as starting the process of rebuilding confidence in the platform for future exchange.