Continue reading the main storyThe New York Times Search HONG KONG â China moved on Thursday to restrict its banks from using Bitcoin as currency, citing concerns about money laundering and a threat to financial stability. The New York Times Search HONG KONG â China moved on Thursday to restrict its banks from using Bitcoin as currency, citing concerns about money laundering and a threat to financial stability. â Chris Buckley contributed reporting from Hong Kong, and Adam Century contributed from Beijing chinese bitcoin. By Channon Hodge, David Gillen, Kimberly Moy and Aaron Byrd on Publish Date November 24, 2013. Part of the value of the currency is attributable to its limited supply. Watch in Times Video » Last month, in a sign of Bitcoinâs growing acceptance, American regulatory officials told a Senate hearing that financial networks like Bitcoin offered tangible benefits for the financial system. Gox exchange, which handles Bitcoin trading online, to $1,100 from $1,217. â âCurrently, the public lacks sufficient understanding of Bitcoin, and some individuals have been caught up by faddishness or a speculative mentality in holding, using and trading in Bitcoins,â the statement said. âOrdinary members of the public have the freedom to participate in Bitcoin transactions as a kind of commodity trading activity on the Internet, provided they assume the risks themselves,â the statement said. â Video Bitcoin Believers While regulators debate the pros and cons of bitcoins, this volatile digital currency inspires the question: What makes money, money. The explanation said that Bitcoins possess âquite high speculative risks,â because of the relatively small market and 24-hour trading, with no curbs on market declines.
In China, Bitcoin was starting to gain favor even among merchants. It said: âThe price can be easily controlled by speculators, creating severe turbulence and huge risks. Bitcoin was the primary form of payment on Silk Road, where people could make purchases anonymously. In the Chaoyang district in Beijing, a restaurant started accepting Bitcoins for payment in defiance of earlier regulation stating that virtual currencies could not be used to purchase real-life goods or services. Credit Stephen Lam/Reuters That sentiment was echoed in the announcement Thursday. But with the growing acceptance of the virtual currency has come increasing concerns about its potential use in illicit transactions. But they warned of the potential for money laundering and other criminal activity associated with such networks chinese bitcoin. Ordinary investors who blindly follow the crowd can easily suffer major losses. Part of its rise has been driven by intense demand for the virtual currency in China. A maximum of 21 million units can be created, leading investors to bid up the price as demand grows. In October, the American authorities arrested Ross Ulbricht, the alleged founder of the online marketplace Silk Road, after claiming that the site was being used to buy and sell drugs, weapons and pornography.
The Chinese move came after officials in Beijing had expressed some support for the legitimacy of Bitcoin. It dropped more than $100 on Thursday, according to the Mt. The action comes as monetary authorities around the world have begun to confront the issue of Bitcoin, a virtual currency whose value has soared in recent months as interest in it has spread.0x.. Nor can, or should, it be circulated or used in the marketplace as a currency. Chinese authorities have restricted the use of the currency. Photo A sign in the window of a San Francisco restaurant that accepts Bitcoin. Continue reading the main story Bitcoin was established in 2009 by an anonymous programmer or collective known as Satoshi Nakamoto. â The notice said that Bitcoin was ânot a currency in the real meaning of the wordâ but was rather a âvirtual commodity that does not share the same legal status of a currency. .NEO.RChain. Ethereum Classic.