China: Bitcoin trading accounts to be shut down by 15 April 2014

Wednesday 2 April 2014 14:24 CET | News

The Central Bank of China has ordered the countrys commercial banks and payment companies to close Bitcoin trading accounts until 15 April 2014, the Wall Street Journal reports.

According to the source, these rules have a direct impact on more than a dozen Bitcoin exchanges, and are a further consolidation of regulations the financial institution put in place in 2013.

Authorities have closely monitored Bitcoins expansion, as it has been regarded as inflicting financial stability and because it has attracted speculative retail investors looking for ways to make profits. In 2013, China recorded a huge increase in demand for Bitcoin and this has led to a growth in global prices and also attracted the attention of regulators.

In December 2013, the Peoples Bank of China ordered financial institutions to stop dealing with Bitcoin. Later that month, it made clear that third-party payment processors could not help exchanges collect money from users.

According to sources familiar with the latest directive, cited by the Wall Street Journal, the Peoples Bank of China has no intention to ban the currency trading in China, and mentions that the move is aimed at enforcing what was already said in the December 2013 document. More specifically, the document stipulates that Bitcoin is not a currency with real meaning and does not have the same legal status as a currency, but that the public is free to buy and sell Bitcoin online provided that they accept the risk.

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Keywords: China, Bitcoin, regulation, prohibition, virtual currency, crypto-currency, online payment
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce