Printed from http://www.electronista.com

China's central bank warns financial institutions against Bitcoin

updated 07:17 am EST, Thu December 5, 2013

Potential for money laundering, tricky regulation causes China Bitcoin setback

The Bitcoin virtual currency has received a setback on its path to widespread use, after China's central bank advised against its use by the country's investors and banks. The People's Bank of China (PBOC) warned financial institutions that they should not trade in Bitcoins due to the potential risks associated with the currency.



Financial institutions and payment companies could not give pricing, buy, sell, or offer financial products linked to Bitcoin, according to a PBOC statement received by Bloomberg. The potential for money laundering and the difficulty in regulating the currency compelled the PBOC to effectively ban its use, though PBOC deputy governor Yi Gang has advised that this still allows individuals to freely trade the currency, despite not being officially recognized as a currency. Indeed, a branch of China Telecom is offering pre-orders for the Samsung W2014 mobile phone for pickup on December 20th, priced at 0.1 bitcoin.

Elsewhere, the currency is slowly receiving acceptance. A Texas federal judge declared it as "a currency or form of money" during an SEC lawsuit against one Bitcoin-related company, while various entities have found themselves in trouble for failing to properly license themselves for money transfers.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Lemur BlueDriver

"Oh no, the check engine light is on…again! What one of the hundreds of reasons could it be this time? Probably going to cost a fort ...

Sponsor

toggle

Most Commented

 
toggle

Popular News