According to BBC, Bitcoin fell to less than half the value it recently traded for, following report s of fresh action by Beijing last month to restricts trade in the virtual currency. BTC China said that local payment companies have been blocked form providing it with clearing services. It means that the firm the world’s biggest Bitcoin exchange in terms of trading volumes, can no longer accept yuan-based deposits. Prices tumbled following the news.
One Bitcoin was trading for as low as 2,560 yuan (421 US dollars), with Japan-based MtGox seeing the exchange rate for one Bitcoin fell from 717 Us dollars to as low as 480 US dollars in Wednesday’s trade. “A lot of people put Bitcoin’s rise over recent months to China where interest in it has going through the roof”, said Emily Spaven, editor of digital currency news site CoinDesk told the BBC. “People are getting frightened that with new regulations the country could now drop out of the ecosystem. Going forward, it’s certainly not the end of Bitcoin, but people have been panic selling”.