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China Bans Bitcoins

technologyEdward KiledjianComment
CC Image- Flickr User Antanacoins

CC Image- Flickr User Antanacoins

Bitcoin is a decentralized digital crypto-currency that seems to have captivated the hearts and minds of millions around the world. Even with millions of fans, many of us still wonder about what this new crypto-currencty is. Is it a passing fad or the next evolution of value exchange? How risky is buying, trading and using Bitcoin?

China's central bankers have now put a stake in the ground and have made handling transactions with the digital currency, for financial institutions illegal, therefore not recognizing it as legal currency. It will allow Chinese citizens to use Bitcoins at their own risk.  Bitcoin trading platforms wishing to do business in China or with Chinese citizens must first register and receive a license from the Chinese Telecommunication Authorities.

Similar to other G20 countries, the Chinese authorities are concerned that Bitcoin transactions are veiled in anonymous secrecy and can therefore be used for money laundering or other illegal transactions. The Chinese authorities have said they will keep a close watch on all Bitcoin activities happening within its borders. 

Source: Bloomberg (link)