China: bank duet to cut short Bitcoin trading accounts

Friday 9 May 2014 13:49 CET | News

China Guangfa Bank and Shanghai Pudong Development Bank have prevented their customers from using bank accounts for trading Bitcoins, informs.

According to an official release on the banks’ websites, cited by the same source, institutional and retail customers are not allowed to use their accounts to purchase or sell virtual currencies like Bitcoin. Otherwise, the accounts would be suspended or closed down.

The Peoples Bank of China (PBOC), said in a report, cited by the source, that Bitcoins are used for speculation mainly and are unstable. It also warned that trading of Bitcoins on online exchanges may be risky given the lack of regulation.

In December 2013, PBOC banned financial institutions from trading in Bitcoin, saying the government would act to prevent money laundering risks arising from use of the digital currency.

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Keywords: China, banks, Bitcoin, onlone payments, digital currency, crypto-currency, trade accounts, shut down
Categories: Payments & Commerce
Countries: World
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