Dear Customers of Huobi,

Huobi had been contacting various government agencies about the “April 15” news that had been spreading on the internet. Unfortunately, we were not able to get any useful information regrading the matter from those agencies. Therefore, we cannot give our investors a clear answer at this time. We are sorry about that.

Yesterday, many Chinese exchanges announced that they had received instructions to either stop processing third-party transactions and/or to stop direct bank deposits. Many investors and members of media had been asking Huobi about the recent development. First of all, we would like to thank all the friends of Huobi for supporting us. We will give you a summery on all the information we have at hand regrading CNY funding (As of April 3, 2014 16:00 Beijing Time).

Huobi's finance department had been talking to third-party processors and multiple banks that we have accounts with. Here is what we know so far.

Third-party Processors:

We had business relationships with four different processors. One of the processors hinted that it might be risky going forward. The other three processors reported that there will be no problem working with us for now.

Of the one processors that said that there might risk going forward. They told us that it is because someone reported them to the corresponding government agencies citing violation of the PBOC regulations on Bitcoins that were announce on Dec. 5 last year.

Banks:

We have accounts with the banks listed below. Information from the branches of those banks is that they did not received any memo about Bitcoin in the last three months.

The banks told us that they have only learn about “April 15” from the news.

The banks stated that they do not know if the news reported about “April 15” is true.

Industrial and Commercial Bank of China
Agricultural Bank of China
China Construction Bank
China Merchants Bank
That all the information we here at Huobi have at this time. They are all from direct sources. We try to be as objective as possible. As to why the information we got is different from other exchanges', our best guess is that could be due to that we are located in different jurisdiction and do not share the same providers. As to why different jurisdictions and different providers have different policies? We do not know. Based on the information we have and the current uncertainty, our third-party payment processors and us came to a mutual decision to stop processing deposits as of April 5. Starting from now, we will upgrade our direct bank deposits service to operates 24 / 7, to insure all deposits are processed in a timely matter. Other than the above changes, our CNY withdraw, Bitcoin/Litecoin withdraw and deposit are not effected.

Lastly, Huobi would like to say:

The current uncertainly and elevated price movements led everyone trying their best to find information they that want to heard. The shorts want everything from Bitcoin exchanges announce to be bad news, they will start their attack at the sight of any good news and vice versa. For this, we will like to let everyone know that Huobi does not have any interest with the shorts or longs. We announce everything we know and we are a transparent exchange. Only time will tell.

Department of Operation, Huobi

Customer Service Hotline: 4000-600-888Hotline: 4000-600-888