Value of Bitcoin Falls After Chinese Government Issues Warning To Banks

Say there is a high risk that the cryptocurrency can be used for criminal activities

Bad news for Bitcoin: the Chinese government has warned the country's banks off trading in it, arguing that Bitcoin has a high-risk of being used by criminals and for money-laundering. The value of the cryptocurrency fell significantly in China as a result.

The government called for the registration of all Bitcoin transaction services and their users, with real names and identity card numbers. It also said excessive speculation around the virtual currency could harm the public interest and the official renminbi/yuan currency. However, people in China are still free to trade Bitcoin online as a commodity.

(H/T Charles WT)