Just when we thought China’s Bitcoin bubble had bitten the dust following a government clampdown on banks and third-party payment processors, it could be on the verge of a comeback with a bang.

The big news is that BTC China, which once briefly had the honor of being the world’s largest Bitcoin exchange by transaction volume before being strangled of funds, has apparently found a way to accept cash deposits again. This could have big ramifications for Bitcoin’s value if the news is true, as it could spark a renewed surge of interest from Chinese investors who helped the cryptocurrency reach the $1,000 milestone back in November last year.

There’s been no official announcement from BTC China yet, with the first hint of this development coming from Reddit. According to a posting by @btc_trading, the exchange began accepting deposits again yesterday, charges no deposit fees and has a turn-around time of about two hours. Since then, several other users have also posted to say that BTC China is indeed accepting bank deposits, but only from the Shanghai Pudong Development Bank – the same method used by Huobi.com and 796.com, two smaller Chinese Bitcoin exchanges.

Reddit user John_Winklevoss later posted screenshots that appear to confirm that BTC China now accepts bank deposits, though unfortunately the images were not of full browser shots, something that might have added a bit more credibility to the claims.

I have personally signed up for a BTC China account to verify whether the news is true, but so far have been unable to receive the SMS verification code to complete the process. However, I’ve reached out to BTC China and hope to confirm if these reports are genuine as soon as possible.

BTC China’s stint as the world’s largest Bitcoin exchange barely lasted more than a couple of weeks. Its sudden rise to the top came on the back of a wave of investment in Bitcoin from Chinese investors, which led to Bitcoin’s value surging past $1,000. Bitcoin’s China bubble was all too brief however, as the People’s Bank of China quickly threw a spanner in the works when it banned third-party payment processors from funding Bitcoin exchanges. This development saw Bitcoin’s value plummet to just $506, although it has since recovered and remained fairly stable for the last few weeks, hovering around $800.