China Bans Financial Companies From Bitcoin Transactions

[Agro]

This is big news and I wonder how this is going to affect the cryptocoins in general

China’s central bank barred financial institutions from handling Bitcoin transactions, moving to regulate the virtual currency after an 89-fold jump in its value sparked a surge of investor interest in the country.

Bitcoin isn’t a currency with “real meaning” and doesn’t have the same legal status as a currency, the People’s Bank of China said. The public is free to participate in Internet transactions provided they take on the risk themselves, it said.

The whole story here [url=http://www.bloomberg.com/news/2013-12-05/china-s-pboc-bans-financial-companies-from-bitcoin-transactions.html]http://www.bloomberg.com/news/2013-12-05/china-s-pboc-bans-financial-companies-from-bitcoin-transactions.html[/url]

[A Former User]

I think with the masses of corruption that exist within China anything that allows more freedom of movement of currency is going to be seen as an aggressor of that problem.

However I think doing this is only going to further encourage illegitimate transactions between people and/or organisations to be pushed onto things like crypto. Although I’m not sure how this will affect crypto overall, maybe a slow down of difficulty increases some Chinese investors lose faith?

I’m sure someone with fair more knowledge of china and crypto will be able to make a more informed evaluation.

BT

[Ernesto]

it’s just the first round.
National authorities are directly affected by a currency that can not handle at will.
But overwhelmed by reality, is a matter of time that they will have to accept the virtual coins… ;D