(Bloomberg) -- China's three biggest bitcoin exchanges are ending a self-imposed moratorium on withdrawals, helping the cryptocurrency to resume its record-breaking rally.
The exchanges suspended withdrawals almost four months ago following increased scrutiny from Chinese authorities amid concerns of capital flight and money laundering. In February, the People's Bank of China told bitcoin venues that it would close exchanges that violate rules on foreign exchange management, money laundering and payment and settlement.
Bitcoin rose as much as 8.5 percent to $2479.34 Thursday, the biggest intraday advance since May 25, when it reached a record high of $2,798.98. The cryptocurrency has more than doubled since March amid optimism about wider acceptance among companies and consumers, regulatory approval in Japan and rising demand in Asia.
BTC China is testing the functionality of withdrawals, Chief Executive Officer Bobby Lee said in a telephone interview Thursday. A spokeswoman for OKCoin confirmed that it's also testing withdrawals. Both exchanges intend to place caps on withdrawal amounts.
Huobi has resumed coin withdrawals, a spokeswoman said in a text message, with a limit of 50 coins per transaction and 50 transactions per day. The exchange also placed limited on litecoin and ethereum withdrawals.
To contact the reporters on this story: Alexandria Arnold in Seattle at abaca3@bloomberg.net, Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net.
To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Eric J. Weiner
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
