China bans banks from Bitcoin trading, triggering selloff

|By:, SA News Editor

Bitcoin sells off after the PBOC bars financial institutions from handling Bitcoin transactions

Bitcoin isn’t a currency with “real meaning” and doesn’t have the same legal status as a currency, PBOC says. Private individuals remain free to trade Bitcoins.

The move is likely tied to Beijing's desire to regulate the yuan: “It represents an unofficial leakage to the current monetary system and trades globally. It is difficult to regulate and could be used for money laundering. I think the central bank is right to make this move,” one analyst says.

Bitcoin is down 21.8% to $930 after trading as high as $1,240 overnight.