Bitcoin Price Drops $40 Following Reports of New PBOC Warnings

Bitcoin prices fell after PBOC issued warnings to banks and other payment institutions to restrict interactions with bitcoin exchanges.

The People’s Bank of China (PBOC) has recently reported warnings to banks and payment institutions to get stricter with customers’ access to bitcoin exchanges. The news has influenced the international price of bitcoin, which reduced by around USD 40. It fell from 3153 Yuan to 2810 Yuan.

PBOC held closed meetings with major commercial banks and payment processors to discuss further restrictions on bitcoin transactions. The Chinese bank is determined to close operations with bitcoin firms. It also pointed out that it is necessary to stop providing an indirect service that PBOC offers for bitcoin exchanges. Besides, bank’s representatives plan to close money withdrawal service.

Significant policy shifts have not occurred after the initial statements were made in December, 2013. Still, PBOC seems to be more determined in its intentions to enforce that policy.

PBOC officials have criticized Bank of China (PBOC) and China Merchants Bank (CMB), which are still providing account opening service for BTCChina.

The recent reports concentrated on deposits to bitcoin exchange from banks and payment processors. However, the statements changed this week as they included a number of China’s main banks and involved warnings to finish conversions from bitcoin to yuan accounts.

Chinese bitcoin exchangers are informed through their financial partners as they do not receive direct news from PBOC.

Global Bitcoin Summit in China will take place in Beijing from 10 to 11th of May.

Alipay, which is often called “China’s PayPal”, declared in a statement that it would no longer facilitate any payments made with litecoin and bitcoin. The firm said:

“To protect the property rights of the general public, support the renminbi’s [yuan] place as the legal fiat currency, prevent money laundering risks: From today onwards, no individual nor entity may use any kind of our company’s payment services for bitcoin, litecoin etc.”

Transactions for deposits, withdrawals, purchases or sales of related vouchers and other such activities, and cannot use our company’s services to transfer any funds related to such transactions. If discovered, our company has the right to immediately terminate such services.”

Alipay has asked everybody to report in case such operations are realized.

The producers on Taobao marketplace in China are currently not displaying products, which are related to bitcoin.

Chinese authorities, which have recently issued warnings at meetings with companies that operate business related to bitcoin, publicly deny a desire to ban bitcoin transactions.

Exchange Huobi recently stopped its voucher payment system. Other financial institutions, including BTC China, set deadline for banks to suspend deposits to bitcoin exchages by April 15.

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