China continues to crackdown on Bitcoin, as the prices of virtual currency keep falling. As of early morning on Wednesday, the Bitcoin price went down to around $500 along major exchanges. This has been the lowest market price for Bitcoin since early November.
Two weeks earlier, China’s central bank prohibited local financial institutions from dealing out bitcoin transaction as they banned Bitcoin as a mode of currency. Now, reports from multiple news outlets have confirmed that the central bank has barred third-party payment companies from dealing in bitcoins.
Certain question has been put in the viability of Bitcoin as a currency in China as a result of this regulation. Just when the global market of bitcoin touched $1000 mark three weeks ago, it’s been dipping down ever since and touched $500 mark two days ago.
According to local news reports, On Tuesday, the People’s Bank of China inhibited 10 of the largest Chinese third-party payment companies to stop dealing in Bitcoin. A move that will effectively block new deposits of bitcoin into local exchanges as these companies are accounted for half of all online transactions in China.
On Wednesday BTC China, the world’s largest Bitcoin exchange released a post confirming its official statement that it would no longer deal deposits in the Chinese currency yuan, due to the announcement of the latest ban.
According to The New York Times report BTC China had to cease renminbi [yuan] account charging functions for some unanswered reasons.
It was confirmed by the BTC China’s co-founder Bobby Lee, later to the Financial Times that they have received notice from third-party payment company that to disallow customers from making deposits into Bitcoin exchange.
After the announcement, the price of Bitcoin dipped down $200 in less than 24 hours.
It is now virtually impossible for Chinese Bitcoin users to buy new bitcoins as financial institutions are banned from processing bitcoin transactions.
Last month Chinese users clustered to buy the cryptocurrency and leap on its global movement, which skyrocketed the price of Bitcoin in large part. But with this latest regulation the Bitcoin market might keep dipping. It will take some time before the Bitcoin market gains its balance.