Bitcoin sells off on fears of Chinese crackdown


Bitcoin (BITCN, BTCS) prices are down more than 8% following Chinese media reports stating China's central bank (the PBOC) has ordered state-owned banks to stop transacting with businesses that make use of the cryptocurrency. Coinbase is currently showing a bid-ask spread of $518.59-$522.26.

The reports haven't been independently confirmed. The CEO of local Bitcoin trading site BTC China says the order (if it exists) would prevent clients from depositing funds via their bank accounts. He adds the PBOC might not make a formal announcement, but simply enforce the ruling via direct channels with banks.

This month has already seen the PBOC take a harder line on online/mobile payment services, such as those offered by Internet giants Alibaba and Tencent. In December, the PBOC barred financial institutions from giving Bitcoin pricing, buying/selling the currency, and insuring Bitcoin-linked products. The move was seen as an attempt to more tightly regulate the yuan.

From other sites
Comments (1)
  • kmi
    , contributor
    Comments (4600) | Send Message
     
    There's now quite a bit of institutional and investor money propping bitcoin even as it encounters increasingly regulation and other obstacles by regulators and national authorities.

     

    My opinion is that bitcoin had 'real world' value inserted into its system via the silk road, and that's the only reason it became relevant, and why competitors haven't been able to gain much traction even when they are designed better.

     

    Now, post silk road, the value in the system is being provided by institutions and investors, but it seems to be losing momentum every time another national authority gives it credibility by... well... regulating it.
    27 Mar 2014, 05:00 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs