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Bitcoin exchanges in China to likely close after new ruling

Beijing business magazine reports China’s PBOC on Bitcoin crackdown blitz.

Bitcoin coin

It looks like things are over for Bitcoin in China.

According to a report by Caixin, a Beijing-based business magazine, the People’s Bank of China (PBOC), the country’s central bank, has ordered all banks in the country to stop processing payments for local bitcoin exchanges. Banks will have until April 15 to wind down business with exchanges.

An official announcement has yet to be made. Caixin is basing this story on an internal bank document it reports to have seen.

During the New York Thursday trading day, the price of a bitcoin dropped by approximately 10 percent to $500.

Without support from China’s banks, local exchanges would have to move operations offshore or only accept cash.

As Caixin’s story has not been independently verified, some think the story is a ruse intended to drive down the price of the most-traded cryptocurrency. Executives from leading exchanges such as BTC China and BTC Trade have not received notice from their banks about the impending change, reports the Wall Street Journal.

It’s estimated that China currently accounts for 60 percent of worldwide Bitcoin trade.

Source: Caixin

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