Chinese bitcoin firm BTC123 halts services due to central bank concerns

Chinese bitcoin investment platform BTC123 announced that it would halt deposits for a financial management system denominated in bitcoin and the yuan beginning on 26th January.

The company cited regulatory requirements in China, naming the People’s Bank of China (the country’s central bank) and the Ministry of Public Security (China’s main policy authority), when explaining the changes.

Ricardo Zhang, CEO of BTC123, said that his company is retooling its strategy in light of the shifting regulatory environment. However, Zhang said the startup had not been contacted directly by the central bank.

BTC123’s shift comes after the company announced a new round of funding via the social media platform Weibo when, on 29th December, the site said it had raised 10 million yuan (roughly $1.5m at press time).