Bitcoin Value Tanks After BTC China Bans Chinese Currency Deposits

The Bitcoin is a virtual currency that traditionally has a very high value in the form of currency in the real world. Bitcoin has had a bad week with Norway dismissing it as a currency. A major bitcoin exchange in China, called BTC China, has hit the virtual currency hard after announcing that it would no longer accept deposits in Chinese yuan.

The move by BTC China came after YeePay, a third-party payment provider in China, gave BTC notice this week that it would no longer provide services. Withdrawals are still able to be processed by the company, but no deposits. Third party payment providers handling transactions in yuan like YeePay were given until January 31 to comply with new government regulations.

China had warned the bitcoin world earlier this month that bitcoin was not legally protected and banned financial institutions from using the virtual currency. China extended the ban to third-party providers this week. The value of bitcoin has been impacted severely by these changes losing nearly 50% of its value.

The highest value for bitcoin in recent months was $1242 in November and the value has now dropped to $480. Bitcoin isn't illegal to use in China, authorities have said that people use the currency at their own risk.

SOURCE: The Guardian