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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.

bitcoin exchange

This is the complete opposite of what bitcoin is made for-an anonymous decentralized economy. But can you blame them?

The Peoples 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 thatonce 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. 

COMMENTS(14)

  • Doofus
    6 months ago Doofus

    first, they asked for personal information, explanations of the sources of the funds to be withdrawn and intended withdrawal destinations. Now they want video verification. Huobi and OKCoin are implementing video confirmation to comply the strict PBOC’s AML and KYC guidelines, expecting the return of bitcoin withdrawals soon. BUT Don’t you think this is too much to ask for? Where is the anonymity we’ve been talking about?

  • mayax
    6 months ago mayax

    Quote from: Doofus on March 30, 2017, 10:08:31 AM
    first, they asked for personal information, explanations of the sources of the funds to be withdrawn and intended withdrawal destinations. Now they want video verification. Huobi and OKCoin are implementing video confirmation to comply the strict PBOC’s AML and KYC guidelines, expecting the return of bitcoin withdrawals soon. BUT Don’t you think this is too much to ask for? Where is the anonymity we’ve been talking about?

    it’s something normal. AML and KYC is mandatory for all the all the exchangers. more than that, a financial license is mandatory too.anonymity is not part of this business anymore. it’s not fair for Circle, Bitstamp, Itbit, Coinbase to pay a lot of money(and to comply with a many laws) for their licenses and others to operate without any.

  • FiiNALiZE
    6 months ago FiiNALiZE

    lol why is there so many people thinking that Bitcoin is anonymous? A regular Bitcoin spender will immediately notice that his/her transactions aren’t as anonymous as the public thinks it is.For Bitcoin to be anonymous, the person that is using Bitcoin would have to bend around the rules for that to happen, so that means the person should have a little more than basic Computer Knowledge to make it anonymous.The regular Bitcoin spender wouldn’t care if the Chinese exchanges ask for video verification because they don’t have much to hide. They just want Bitcoins.

  • buwaytress
    6 months ago buwaytress

    Understandable at some point… but when AML/KYC and due diligence for cryptocurrency users far exceeds that of regular fiat or even other forms of electronic currency, it can be a major obstacle for adoption.I do agree the general user will probably just comply, but I suppose they want to try and take a hit out on suspected activity. This sort of move will only push illegal activity deeper down the rabbit hole.

  • BitcoinAllBot
    6 months ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • lottery248
    6 months ago lottery248

    i would agree to enforce AML but exterminating the anonymity is not a perfect way to clear the laundering. people who attempt to launder their money using those site might refer what MMM China has done to make their transaction decentralised. China is destroying the protocol of bitcoin, and they are aggressively referring ‘Country’ with their ‘Communist party’; always censoring what they don’t want by protecting the country however it is actually themselves. Seems they are attempting to ruin all the privacy people are supposed to deserve, especially they are wanting to develop economics.for the VPN, since China is not planning to ban bitcoin or other altcoin like MaidSafe, there are possibility to bypass the internet ban with such blockchain, good for developers.

  • todu
    6 months ago todu

    So the exchanges will not be forced to meet every customer in person? Video AML/KYC verification is enough to satisfy the PBOC regulators?

  • Zheo
    6 months ago Zheo

    umm.. china will have exact same thing for ethereum?
    both are great but u cant seriously think that PBoC would allow ethereum trading without same controls.

  • Mautje
    6 months ago Mautje

    Finally, people will start actually using decentralized markets! (they already exist)

  • Doofus
    6 months ago Doofus

    Quote from: FiiNALiZE on March 30, 2017, 10:52:53 AM
    lol why is there so many people thinking that Bitcoin is anonymous? A regular Bitcoin spender will immediately notice that his/her transactions aren’t as anonymous as the public thinks it is.For Bitcoin to be anonymous, the person that is using Bitcoin would have to bend around the rules for that to happen, so that means the person should have a little more than basic Computer Knowledge to make it anonymous.The regular Bitcoin spender wouldn’t care if the Chinese exchanges ask for video verification because they don’t have much to hide. They just want Bitcoins.
    so you a r with video confirmation? but don’t u think it’s like a never ending game? what would be the next move?

  • Kakmakr
    6 months ago Kakmakr

    You are missing the whole point with AML/KYC regulations. They are implementing these regulations to strip Bitcoin from all anonymity. They want to know where the money is and who they can target if they want to do that in the future. Why do you think people use other methods to buy bitcoins lately? Do you think it is unlikely that the Chinese government will try to confiscate all Bitcoins? Well, look what happened in the USA :” April 5, 1933, one month after taking office, Roosevelt used the powers granted to the president by the Trading with the Enemy Act of 1917 to make gold ownership illegal. He issued Executive Order 6102, which made gold ownership—both in coins and in bars—illegal for all Americans and punishable by up to ten years in prison. “You think this will not happen in China? Think again : http://blogs.wsj.com/chinarealtime/2009/06/29/china-cracks-down-on-virtual-currency-for-real/

  • JanpriX
    6 months ago JanpriX

    Quote from: Doofus on March 30, 2017, 10:08:31 AM
    first, they asked for personal information, explanations of the sources of the funds to be withdrawn and intended withdrawal destinations. Now they want video verification. Huobi and OKCoin are implementing video confirmation to comply the strict PBOC’s AML and KYC guidelines, expecting the return of bitcoin withdrawals soon. BUT Don’t you think this is too much to ask for? Where is the anonymity we’ve been talking about?

    From my point of view, this is going way overboard on the part of the Chinese government. They are trying centralize BTC and remove its anonymity by using underhand methods. They are reall serious in taking control of BTC in their country. This will greatly affect the community there as they are cracking down this methods.

  • ImHash
    6 months ago ImHash

    Why would you care? if you’re not conducting illegal business and not involved in criminal/terrorism activity you should not fear or be concerned at all.They have all the rights to do such a thing as long as you are trading inside their borders, they’re doing this to protect themselves and protect you and other people as well, it’s not against the laws, you may want to stay anonymous then better to use other exchanges.Such measures are deployed by governments to minimize the risks involved with money and anonymity, when they’re combined most of the times bad things tend to happen so you shouldn’t blame them.But if some people had significant amounts in those exchanges and just wanting to withdrawal and go their own ways and suddenly get caught up and denied to withdrawal then that’s bad for criminals those who have something nasty to hide otherwise video verification isn’t the end of the world.

  • Doofus
    6 months ago Doofus

    Quote from: ImHash on March 31, 2017, 07:37:41 PM
    Why would you care? if you’re not conducting illegal business and not involved in criminal/terrorism activity you should not fear or be concerned at all.They have all the rights to do such a thing as long as you are trading inside their borders, they’re doing this to protect themselves and protect you and other people as well, it’s not against the laws, you may want to stay anonymous then better to use other exchanges.Such measures are deployed by governments to minimize the risks involved with money and anonymity, when they’re combined most of the times bad things tend to happen so you shouldn’t blame them.But if some people had significant amounts in those exchanges and just wanting to withdrawal and go their own ways and suddenly get caught up and denied to withdrawal then that’s bad for criminals those who have something nasty to hide otherwise video verification isn’t the end of the world.
    you are really big-hearted to think this is OK. But i don’t think bitcoin is something the government should set into. What if all governments work together trying to control bitcoin? Think hard ! http://news.8btc.com/chinese-bitcoin-exchanges-implement-video-verification-to-resume-withdrawals

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