Bitcoin’s value tumbles in half after China forces top exchange to stop trading
2013-12-18 0:00

By Alex Hern | The Guardian

The price of bitcoin has plummeted following an announcement from China’s largest bitcoin exchange that it would no longer be accepting new yuan deposits.

BTC China said that due to action by a third-party payment provider, YeePay, it could no longer accept deposits in the Chinese currency, although it would still be able to process withdrawals. BTC’s chief executive, Bobby Lee, said that YeePay gave notice on Wednesday morning Shanghai time that it would no longer provide services.

Lee blamed government regulation for the decision. China’s central bank warned in early December that bitcoin was not legally protected and had no "real meaning", and barred financial institutions from using the currency.

On Tuesday, the central bank extended that ban to payment companies like YeePay, and gave them until Chinese New Year, which begins on 31 January, to comply.

At publication time, the value of one bitcoin on BTC China stands at ¥2,630 (£266.02), down from a high of ¥7,395 (£741.70) in late November. Bitcoin has dropped against other currencies in the same period, falling from £750 to £300 in the UK and from $1242 to $480 in the US.

On 18 November, BTC China raised $5m in a funding round from institutional investors Lightspeed. Until then, it had been self-funded by its three co-founders, who opened the site in June 2011.

Bitcoin remains legal to use in China, and the central bank is standing by an announcement that individuals are free to trade it at their own risk. But without third party payment providers, new purchases of the currency are virtually impossible.


Read the full article at:

Tune into Red Ice Radio:

Clif High - Hour 1 - Bandwidth Caps, Bitcoin, ISON & Nummo Origins

Jason Erb - Hour 1 - Economic History & Alternative Currencies

John Perkins - An Economic Hitman on Predatory Capitalism & Corporate Monopoly

Catherine Austine Fitts - Swine Flu, Vaccination & The Economy

Bill Still - Hour 1 - Fixing Greece, The Crumbling EU & Monetary Reformation

Walter Block - Hour 1 - Libertarian Philosophy & Anarcho-capitalism

Tracy Twyman - Alconomics, Money & Magic

Related Articles
Russia’s Largest Bank Proposes Bitcoin Alternative
(NOOOOOOOO!) JPMorgan files patent for Bitcoin-style payment system
Bitcoin Was Created By DARPA?
Stefan Molyneux - The Truth About Bitcoin
UK Royal Mint Working On Plans To Issue Gold-Backed Physical Bitcoins
Bitcoin site is hacked, with $1million of the virtual currency stolen
Meet Dark Wallet – How Crypto-Anarchists Will Store Their Bitcoins

Latest News from our Front Page

Norwegian school brutally kicks out students, reopens as immigration center
2015-11-25 1:46
A failing Norwegian school has brutally kicked out all of the students living there with just a few days notice to find somewhere else to live and study. It has now reopened as a reception center for immigrants. The school, called Waldorf, is in the Røyken municipality of Buskerud County. It had been failing for sometime, and was officially declared bankrupt ...
Why not hear about Islam from a woman who grew up as Muslim in the ME?
2015-11-25 1:52
Youtube description: She says: "I have reached a boiling point with these lies about Islam! Please share it, don't let me waste my breath....go to for a translation of the ISIS website along with other great articles and podcasts!" Source:
Funniest Moments of Illegal Migrants
2015-11-25 1:27
Youtube description: - Beginner picture: Macedonia - Disastrous migrant: Hungary-Serbia border (Serbian side) - Grateful migrants: Hungary (Budapest) - Border Control: Austria (Slovenian border) - Migrant actor: Hungary-Serbia border (Serbian side) - Intelligent migrants: Hungary-Serbia border (Hungarian arie) (The fence was built from the border 2,5meters, in Hungarian area) - Idiot migrant: Hungary (Bicske) Source:
Pew: 65% say the news media has a 'negative effect' on America
2015-11-25 1:55
More than six in 10 Americans believe that the news media, followed closely by Hollywood, has a negative effect on the country, according to a new survey. An extensive new Pew Research Center survey finds that 65 percent believe that the news media "has a negative effect on the way things are going in the country." Some 56 percent said the ...
Hostage situation reported in N. France, several suffer 'gunshot wounds''
2015-11-25 1:12
A hostage situation has been reported in the northern French town of Roubaix near the Belgian border. Several people have sustained gunshot wounds, Reuters reported citing medical sources. The area has been cordoned off by police, RTL reported, adding that gunfire can be heard. La Voix du Nord newspaper says the hostage takers are armed with Kalashnikovs. Witnesses told the daily that ...
More News »