China Banning Payment Companies From Dealing With Bitcoin Exchanges, Say Sources
Earlier this morning, we posted some rumors that suggested a major shift in China regarding bitcoin adoption. As it were, it looks like they may be coming to fruition. On Monday, some of the top third-party payment companies in the country met with officials from the People's Bank of China - and while the meeting wasn't explicitly about bitcoin, it reportedly became a talking point in the conversation. "PBOC, in no uncertain terms, directed third-party payment companies not to do business with bitcoin exchanges in China," said what has been called a reputable source to CoinDesk. So, we are....
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CoinDesk can confirm that the source mentioned in this piece is Bobby Lee, CEO of bitcoin exchange BTC China. Lee said he is now happy to go on the record. Sources close to China's Central Bank today reported that the institution has banned third-party payment companies from doing business with bitcoin exchanges. A reputable source told CoinDesk that the People's Bank of China (PBOC) met with most of the top third-party payment companies this morning. The source said the meeting topic was unrelated to bitcoin, but digital currency became an important part of the discussion. "PBOC, in no....
CoinDesk can confirm that the source for our original piece on the PBOC ban was Bobby Lee, CEO of bitcoin exchange BTC China. Lee said he is now happy to go on the record. Bitcoin dipped to its lowest price in a week, following yesterday's reports that the People's Bank of China had banned third-party payment firms from dealing with bitcoin exchanges. Prices took a dive throughout the day, starting at around $876 on the CoinDesk Bitcoin Price Index in the early hours (GMT), and falling to as low as $645 later in the day. Prices briefly rallied up to $771 on the BPI, only to dip once again.....
Oh, look. Another day, another story about China. Today, reports indicate that the governor of the People's Bank of China (PBOC) - the Chinese central bank - has no intentions of banning bitcoin. Despite the fact that their hasn't been talk lately of an outright ban, there's been chatter about banks discontinuing relationships with bitcoin exchanges. "It is out of the question of banning bitcoin as it is not started by central bank," Zhou Xiaochuan was quoted as saying, according to CoinDesk. "Bitcoin is more a kind of tradable and collectible asset, such as stamps rather than a payment....
The price of bitcoin has crashed slightly following the breaking news that China is effectively banning the use of Bitcoin to carry out business for financial companies. The People's Bank of China has said that bitcoin doesn't quite have a "real meaning", and individuals should take caution if investing or using it. The story with financial institutions, however, is different. The central bank is banning the use of bitcoin for these companies. "The concern is that it interferes with normal monetary policy operation," said lead researcher Hao Hong from the Bocom International Holdings....
Following on the heels of the news that China-based bitcoin exchange BTC38 would suspend fiat-to-digital currency trading, rival Chinese exchanges OKCoin and FXBTC have received official notices from financial partners notifying them that certain accounts will be terminated. The new announcements are the latest indication that China's central bank, the People's Bank of China (PBOC), may be following through on its decision to more actively enforce prior rulings related to how domestic financial service providers can interact with the bitcoin exchanges. For example, while OKCoin was....