The price of bitcoin is once again crashing lower today following a negative statement from Denmark’s Finance Ministry, together with this mornings ban in China for companies who would otherwise provide clearing services for the virtual currency’s trading platforms.<\/p>\n
Denmark – Use of Bitcoin Unsafe<\/strong><\/p>\n Late on Tuesday, the Financial Supervisory Authority of Denmark has issued a statement warning against the use of bitcoin, litecoin and the like as \u201cunsafe\u201d, but also saying they will not be regulating crypto currencies exchanges should they appear.<\/p>\n The statement echoes the European Banking Authority warning that crypto currencies exchanges are not a safe place with users risking their money as the latter might get stolen or become inconvertible into real money at any point.<\/p>\n Meanwhile, the Chinese government has banned domestic third party payment companies from providing clearing services for virtual currency trading platforms, according to a report in the China Business News today.<\/p>\n BTC China, the country’s biggest bitcoin trading platform, and other bitcoin exchanges in the country rely on third-party providers to handle the transactions for bitcoin trading as they are not licensed to handle clearing services that enable investors to deposit and withdraw their money. BTC China, on its Twitter-like Weibo account, told users it “has no choice but to stop accepting yuan deposits”.<\/p>\n BTC China, the world\u2019s largest exchange by volume. It said it has stopped accepting new yuan deposits onto its marketplace after receiving notice this morning.<\/p>\n “We essentially got notice from our third-party payment provider today that they will discontinue accepting payments for us and new deposits,” Bobby Lee, the CEO of BTC China, said.<\/p>\n Last month bitcoin’s value hit $1200 per bitcoin. The price today has shot back under $500. BTC China price dropped to under 2500 yuan, down from highs of over 7500 yuan in November.<\/p>\n “The drop in bitcoin prices is definitely due to the rumour that third-party payment services can’t work with us any more,” said Liu Jun, CEO of Chinese bitcoin exchange GoXBTC.<\/p>\n China\u2019s central bank earlier this month banned Chinese commercial banks from trading in the virtual currency.<\/p>\n Bitcoin, which unlike conventional money, is bought and sold on a network independent of any central authority, has become popular among users who lack faith in established banking systems worldwide. But the question is for anyone hoping to use the crypto currency as more than a conversation topic, will bitcoin get boring, or stable, before it gets cracked or abandoned?<\/p>\n<\/p>\n