China to ban bitcoins and crypto-currencies exchange operations

Almaty. September 11. Silkroadnews – China plans to ban bitcoins and exchange transactions with crypto-currencies, Fin24 financial information portal reported.
China plans banning trade of bitcoins and other virtual currencies at its exchanges, once again hitting the $150 billion crypto currency market after last week IPO ban, the report said.
At the same time, it is noted that the ban will be applied only to trade in crypto-currency on exchanges, it is not planned to prohibit over-the-counter transactions.
According to the publication, as soon as China’s plans have been revealed the bitcoin rate fell sharply, with China accounting for around 23% of bitcoins deals, besides, there are a lot of big companies working with bitcoins in this country and using huge computing capacity to make deals in digital currency.
While Beijing’s motivation in its plans to impose a ban on exchange operations with the crooked currencies is unclear, it takes place amid large-scale actions on financial risks reduction. The bitcoin rate jumped 600% in dollar terms over the past year, provoking concerns of a financial bubble.
With this the People’s Bank of China conducted trial runs of its own prototype crypto currency, having made another move toward becoming the first major central bank issuing digital money.
OKCoin, BTC China and Huobi, the world’s three biggest bitcoin exchanges, said they had not received any regulatory notifications of bans on trading in crypto-currencies. All three exchanges reported deals on Monday, when bitcoin climbed 6.3% on OKCoin.
While bitcoins users are still able to trade in crypto-converters in China without the possibility of exchange operations, the process is likely to be slower and would have an increased credit risk, analysts say. At the same time, the exchange deals ban is unlikely to have a serious impact on the world’s currency exchange rates, as exchanges outside of China will continue to operate in the same regime.
China’s role at the bitcoins market has already been declining over the recent months, as the authorities tightened regulation, though China once accounted for over 90% of the world bitcoin trading.