Baidu Stops Accepting Bitcoins After China Ban – Bloomberg

News, Popular, Trending December 8, 2013 , by admin Comments Off 21

Baidu Inc., China’s biggest search engine, stopped accepting Bitcoins after the nation’s central bank barred financial institutions from handling transactions, triggering a drop in the virtual currency.Bitcoin fell more than 20 percent and was quoted at 4,250 yuan $863 as of 3:25 p.m. Shanghai time on BTC China, the most active online exchange where it’s traded. It lost 30 percent to $575 on Bitstamp, another web platform where the digital money is exchanged for dollars and other currencies.A Baidu website-hosting venture started accepting the digital money on Oct. 14 as Bitcoins gained popularity in China, fueling a global rally. Prices topped $1,000 last week, compared with about $138 two months ago on Bitstamp. The People’s Bank of China said Bitcoin isn’t a currency with “real meaning” and can’t be accorded the same legal status.“Baidu’s website-acceleration platform decided to suspend Bitcoin payment acceptance from Friday as recent large fluctuations in Bitcoin’s value makes it unable to safeguard users’ interests,” the company said in a statement on its website today.The decision follows the Chinese government’s announcement, according to the Beijing-based company.China’s central bank said the public is free to participate in Internet transactions provided they take on the risk themselves. The ban on financial institutions handling Bitcoins signals concerns that the digital currency may threaten capital controls and financial stability. The country became the world’s biggest Bitcoin trader this year, according to BTC China.

via Baidu Stops Accepting Bitcoins After China Ban – Bloomberg.