China Prohibits Bitcoin transactions in Bank

Bitcoin

China Prohibits Bitcoin transactions in Bank - China's central bank officially banned Bitcoin transactions between local banks and financial institutions, for fear of having a high risk of money laundering and could potentially be used for illegal activity.

The official announcement came a week after the Chinese central bank said there was no plan to recognize the legitimacy of Bitcoin, but it would not prohibit the use virtual currency among the online community.

In a statement published Q & A website, China's central bank said that it has been monitoring the development of Bitcoin and have a weakness concerns the legal status of the virtual world currency as well as the size of the trade volume.

Bitcoin according to the central bank of China has no limits on the price risk and has the potential for money laundering, because it is anonymous and has no geographical boundaries. So that currencies are easily used for criminal activity, such as drug trafficking, weapons and illegal sites.

However, the central bank said it will not stop the online community with Bitcoin transactions and warned users to be aware of the risks associated virtual currency. They added, will cooperate with the relevant government, regulators and financial institutions to identify the steps necessary to ensure the implementation of the field.

Currently there are approximately 12 million Bitcoin outstanding and each is worth under $ 1,045. China is the country with the largest Bitcoin sales through BTC China.

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