|Hao Ren |||Mar 29, 2014 07:38 AM EDT|
The People's Bank of China (PBoC) has issued a new guideline to all banking and financial institutions to cease and desist from using and engaging in the trade of bitcoins.
Starting April 15, the PBoC ruling requires all banks and real and virtual payment systems to shut down all of the accounts opened by operators of websites trading in the virtual currency.
Like Us on Facebook
The latest PBoC ruling serves as the final blow on bitcoin transactions in China using official banking and financial services. Fifteen trading websites were identified by the central bank to be covered by the order.
In 2013, the central bank and other national agencies prohibited various financial institutions from giving services to bitcoin related trading. Under the same circular, bitcoins are seen in China as a commodity and not a currency.
Both the 2013 circular and the latest order by PBoC do not restrict individuals from investing or trading bitcoins but warned that doing so will be at their own risk because it is not recognized as a legal tender.
Business analysts believe that despite the newest circular, trading sites in China will need to transfer their servers elsewhere and local investors will need to pay in cash in order to purchase and use bitcoins in transactions that are using bitcoins as a currency.
Bitcoins started in 2009 as a peer to peer payment system, a digital currency that uses cryptography to manage and operate the creation and transfer of money.
©2015 Chinatopix All rights reserved. Do not reproduce without permission
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
China Pork Prices Expected to Stabilize As The Supplies Recover
Elephone P9000 Smartphone is now on Sale on Amazon India
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?