Virtual currency Bitcoin can’t be used by banks
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.