Chinese Regulator Issues New Warnings, Bitcoin Falls

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Chinese Regulator Issues New Warnings, Bitcoin Falls

The People’s Bank of China (PBOC) has issued fresh warnings to banks and payment providers to prevent their customers from accessing bitcoin exchanges, as per certain reports.

The developments may have an impact on prices of bitcoin, which declined by about $40 within a few hours in the morning.

According to sources at Coindesk, PBOC officials held restricted meetings this week with major banks and payment providers to insist on termination of any sort of dealings with bitcoin firms.

While no pronouncements indicative of a substantial shift in policy have been made since the initial statements last December, the PBOC has more than once demonstrated intentions to enforce that policy.

Recent reports have for the most part bordered on banks and third party payment providers being restricted from facilitating deposits to bitcoin exchanges, but the latest restrictions have gone a notch higher in that they not only involve several major banks but also include requirements to stop withdrawals as well as bitcoin conversions to yuan accounts.

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As usual, bitcoin exchanges claim the PBOC has not contacted them directly about the warnings, but they are usually alerted by their financial partners.

The warnings have come at a time when the Global Bitcoin Summit is scheduled to happen in Beijing from 10th to 11th May, suggesting the central bank of china may be trying to dampen enthusiasm ahead of the event.

News started to stream in on Friday, with Alipay, which is considered as the Chinese equivalent of PayPal, said in a statement that it would not facilitate any transactions that are associated with bitcoin or litecoin.

“To protect the property rights of the general public, support the renminbi’s [yuan] place as the legal fiat currency, prevent money laundering risks: From today onwards, no individual nor entity may use any kind of our company’s payment services for bitcoin, litecoin etc,” the form said today.

Coinreport says the plunge in bitcoin price indicates China events are sending investors panicking.

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To contact the reporter of this story; Deepak Tiwari at deepak@forexminute.com