Vir­tual cur­rency Bit­coin can’t be used by banks

China Daily (Canada) - - NEWSCAPSULE -

China’s cen­tral bank barred fi­nan­cial in­sti­tu­tions from han­dling Bit­coin trans­ac­tions af­ter in­vestors lost money on fraud­u­lent online plat­forms for the vir­tual cur­rency.

“Judg­ing from its na­ture, Bit­coin is a spe­cific vir­tual com­mod­ity. It does not have the same le­gal sta­tus as a cur­rency and can’t, and should not, cir­cu­late in the mar­ket,” the Peo­ple’s Bank of China said in a state­ment on its web­site.

Fi­nan­cial in­sti­tu­tions are banned from, among other things, trad­ing, set­tling and mar­ket-mak­ing deals us­ing Bit­coins, it added.

The cen­tral bank said that the vir­tual cur­rency could be used for reck­less spec­u­la­tion, money laun­der­ing, drug and gun trans­ac­tions, gam­bling and other il­le­gal ac­tiv­i­ties. It could also be used by ter­ror­ists to fund at­tacks, it added.

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