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China’s Bitcoin Crackdown

After much speculation that it was coming, China’s Central Bank has ordered commercial banks and payment companies nationally to close bitcoin-trading accounts in two weeks.

“There will definitely be a negative impact to the exchanges,” said Bobby Lee, chief executive of Shanghai-based BTC China, the most prominent Chinese exchange.

The newest blow to bitcoin follows a December 2013 release from the People’s Bank of China ordered financial institutions to stop dealing with bitcoin and many analysts familiar with the space agree the newest move by the PBOC is an attempting at enforcing that December ruling.

China imposes strict capital and currency controls, which bitcoin theoretically could allow users to bypass.  MPD Found David Evan predicted that this sort of thing might start happening as governments “realize that bitcoin is to cash what crack is to marijuana – a more potent and addictive drug.”

 

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