China Bans Payment Firms from Working With Bitcoin Exchanges

UPDATE on the 18th of December: BTC China Stops All Yuan Deposits – Bitcoin Price Crashes

The People's Bank of China (PBOC), the Chinese central bank, has today banned payment companies from doing business with bitcoin exchanges.

The PBOC met with most of the top Chinese third-party payment providers this morning and digital currency was an important part of the discussion. According to sources claiming to be close to the institution, the PBOC in no uncertain terms, directed third-party payment firms not to do any business 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 in China, so they were told by people who attended the meeting.

Upon encountering these rumors on Chinese internet forums the financial newspaper "National Business Daily" (link in Chinese) contacted the PBOC and the leading third-party payment providers in China, Alipay and Tenpay, and they all confirmed the reports.

The PBOC now explicitly requires that banks and payment companies not provide payment and Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term services to Bitcoin, Litecoin and other peer-to-peer currency trading sites. For payment companies that have already done business with Bitcoin Exchanges, should end their business cooperation; withdrawals of balances should be completed before the Chinese Spring Festival (January 2014), and new payment services are not allowed.

On December 5th the PBOC banned banks in the country from engaging in financial transactions in Bitcoin, but left private clients to make their own decisions, leaving a space for supporters of the digital currency to claim it can still operate in. Today's action can almost completely stop Chinese demand for Bitcoin, as individuals will not be able to purchase it using banks or third-party payment providers.