Bitcoin value takes hit as China's top exchange stops accepting deposits in local currency

By on December 18, 2013, 10:15 AM
china, exchange, bitcoin, virtual currency, litecoin, trading, mining

Bitcoin value has dropped sharply in the past 24 hours as China’s biggest exchange, BTC China, is no longer accepting deposits in the Chinese currency due to regulatory pressure from the government. The exchange will, however, continue operations as usual and accept deposits in other currencies according to an official post on Weibo.

According to the New York Times, Chinese news reports claim the country’s central bank met with more than 10 of the country’s largest third-party payment processing companies earlier this week and ordered them to stop accepting digital currencies.

Earlier this month, the People’s Bank of China as well as four other agencies effectively banned Bitcoin. Officials said the move was to safeguard the interests and property rights of the public and to protect the legal standing of the renminbi, the official currency of China.

The effects are being felt throughout the crypto currency world as other popular coins like Litecoin are also way down as of writing. Is this really the end of the road for crypto currency or just another of the many crashes we've already witnessed in the volatile market?

While some people will no doubt panic and sell their entire stash and / or their mining equipment for a fraction of what they paid, others will attempt to weather the storm and see what happens over the long haul. There’s really no way to tell at this point what the future may hold but if you’re looking at crypto coins as a long-term investment, just remember that it’s like a rollercoaster – hang on for the ride when it goes down and enjoy it when it goes up.

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