Bitcoin drops below USD 4000 over Chinese ban fears

The Bank of China has indicated it would ban Chinese exchanges from providing virtual-currency trading services, according to The Wall Street Journal.

Both Bitcoin and Ethereum fell this weekend after Chinese regulators said they planned to shut down exchanges that buy and sell Bitcoin in the country. There has been a small rebound in the value of digital currencies since then, but Bitcoin is still 20% over the peak it reached a few weeks ago.

Chinese authorities previously announced plans to limit the use of digital currencies, such as last week’s ban of initial coin offerings

Chinese regulators are concerned with the dramatic increase in value of digital currencies, as more Chinese people began to use crypto-currencies as a way to bypass banks and move money outside of China’s borders. Digital currency is also seen as a way to launder money.

 

September 13th, 2017 by