Bitcoin value slumps after China bank measures

Tags: Bitcoin, China, News
Bitcoins were trading today at less than half their value at the end of

RELATED ARTICLES

last month after Chinese authorities took steps to rein in transactions in virtual currency, which had soared in recent months.

Prices on BTCChina, the country's biggest Bitcoin trading platform, stood at $504 each, down almost 60 percent from their high of 7,588 yuan in November.

Bitcoin, invented in the wake of the global financial crisis, is a form of cryptography-based e-money that offers a largely anonymous payment system.

Chinese speculators have poured money into it this year, driving the BTCChina price up 9,122 per cent from January 1 to November 30 and making the country at times the world's biggest Bitcoin market.

But two weeks ago China's central bank ordered financial institutions not to provide Bitcoin-related services and products and cautioned against its potential use in money-laundering.

On Monday, it banned domestic third-party payment companies from providing clearing services for virtual currency trading platforms, according to a report in the China Business News.

Citing an unnamed source, it said the instruction was issued at a closed-door meeting.

A notice posted today on BTCChina's website to its "valued customers" said: "Due to new government regulations, BTCChina will temporarily suspend CNY (yuan) deposits."

It added: "Rest assured that BTCChina will continue to operate normally. We deeply apologise for any inconvenience."

Both BTCChina and another major Chinese exchange, OKCoin, have resumed charging investors transaction fees, according to notices on their respective websites, which said the move was intended to prevent speculation and price manipulation.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The economic survey falls in step with the BJP’s election manifesto

    It’s always tough to find something wrong with the annual economic survey as it only articulates the government’s desire to set its house in order

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture