More restrictions from China. Payment service providers not allowed to deal with Bitcoin exchanges

China is putting a ban on third-party payment firms from dealing with Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term exchanges.

According to a report from CoinDesk, the Peoples Bank of China (PBOC) met yesterday morning with leading third-party payment service providers to discuss general issues not necessarily related to Bitcoin. However the subject of Bitcoin arose, becoming the main discussion point of the meeting.

Sources have reported on restrictions given by the bank, resulting in a ban from doing business with Chinese Bitcoin Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term firms. Earlier this month, PBOC released a statement banning Bitcoin and other digital-currencies from being treated as actual currencies, resulting in payment firms and merchants not being allowed to offer pricing in Bitcoin. PBOC currently recognizes Bitcoin strictly as a commodity and not as actual tender.

“PBOC, in no uncertain terms, directed third-party payment companies not to do business with bitcoin exchanges in China,” the source explained.

No official statement was given by PBOC or any of the firms that attended the meeting. According to Chinese newspaper “National Business Daily”, representatives from top Chinese payment providers Alipay and Tenpay, have confirmed the reports, but they did not go into detail on the specifics given by PBOC.

According to the reports, it is rumored that all banks and payment providers in China are not allowed to provide their services to Bitcoin or other digital-currency exchanges. Companies already dealing with such exchanges are to cease their business relationships, having until January 2014 to complete all withdrawals and balance cash-outs.

When PBOC made their official statement on Bitcoin earlier this month, banks and financial sectors from around the world also publicized their position on the matter, with the latest being Switzerland and Norway. We will have to wait for an official statement from PBOC, or from any of the payment service providers who attended the meeting, to get any specifics on the new restrictions.

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