China Restricts Banks’ Use of Bitcoin

By GERRY MULLANY

Published: December 5, 2013

HONG KONG — China moved on Thursday to restrict its banks from using Bitcoin as currency, citing concerns about money laundering and a threat to financial stability.

The action comes as monetary authorities around the world have begun to confront the issue of Bitcoin, a virtual currency whose value has soared in recent months as interest in it has spread. Part of its rise has been driven by intense demand for the virtual currency in China.

The notice curtailing financial institutions’ involvement with Bitcoin was issued by the People’s Bank of China and four other ministries and agencies, and the directive said the step was needed to “protect the status of the renminbi as the statutory currency, prevent risks of money laundering and protect financial stability.”

Read more: http://www.nytimes.com/2013/12/06/business/international/china-bars-banks-from-using-bitcoin.html?hpw&rref=business

-- The New York Times 2013-12-05

Price fluctuation after China's announcement.

Price fluctuation after China's announcement.

Bitcoin chart 20131205.png

That's going to hit some recent speculators pretty hard!

Think its the opposite. Its been ranging in 1100 - 1200 range for the past few days. China nixes the bank usage and there is virtually no change. Things are looking good for ppl long on BTC

Price fluctuation after China's announcement.

Bitcoin chart 20131205.png

That's going to hit some recent speculators pretty hard!

Interesting reading for those recently praising and recommending bitcoin.

Maybe it's a temporary drop, maybe it's propaganda, who knows?

http://www.independent.co.uk/news/business/news/bitcoin-crashes-after-china-bans-banks-from-using-virtual-currency-8985647.html

I think it is only a matter of time before bitcoin is banned by most countries. Not too surprising as it is used mainly for illegal transactions.

It is already banned in Thailand (4 or 5 months ago). Has this decreased or eliminated use in Thailand? I doubt it.

China will soon overtake the USA as the worlds largest economy. This is the de facto end of bitcoin unless they change their policies in the future.

Only one currecy is used more for illegal transactions... USD

I think it is only a matter of time before bitcoin is banned by most countries. Not too surprising as it is used mainly for illegal transactions.

Bitcoin value tumbles after BTC China exchange blocks renminbi deposits

BTC among first casualties, as value of the digital currency plummets after People's Bank of China orders third-party payment providers to stop using virtual money

Danny Lee, Angela Meng and Amy Nip

PUBLISHED : Wednesday, 18 December, 2013, 6:13am

UPDATED : Thursday, 19 December, 2013, 3:34am

Bitcoin prices have gone into freefall after Shanghai-based exchange BTC China yesterday blocked renminbi deposits, sparking a major global sell-off.

The blocking of deposits follows an order earlier this week from the People's Bank of China banning all transactions by third-party payment providers involving digital currencies.

A continued crackdown on bitcoin trading on the mainland prompted unconfirmed reports last night that the People's Bank of China had been hit by a "retaliatory" denial-of-service attack after people experienced problems accessing the bank's website. The bank could not be reached for comment.

Read more: http://www.scmp.com/business/banking-finance/article/1384688/bitcoin-price-slump-after-beijing-bans-clearing-services

-- South China Morning Post 2013-12-19

Source: http://bitcoincharts.com/charts/mtgoxUSD#rg60ztgCzm1g10zm2g25