/biz/ - Business & Finance

http://www.trunews.com/article/following-comeback-china-crushes-bitcoin-again

Last week, the Bitcoin suffered a nearly 40-percent loss in valuation following the announcement that China would ban exchange of the cryptocurrency in the coming weeks. Immediately following those reports, Bitcoin fell to $3,000, prompting a number of analysts to suggest it was nearing a fatal crash. Over the weekend, however, its value had climbed back up to $4,000, but The Wall Street Journal reported Monday morning the Chinese government is attempting an additional “broad clampdown” on trading, calling it the “most draconian measures any government has taken” to control cryptocurrency. All channels for buying or selling Bitcoin will be banned, which goes beyond its previously announced ban on commercial exchanges. The WSJ report states:

>A broader clampdown will likely include blocking mainland access to websites of foreign Bitcoin exchanges such as Coinbase in the U.S. and Bitfinex in Hong Kong, say people familiar with the matter. A lack of clarity from regulators has fueled worries about how far the government will go. One uncertainty, for example, is whether the ban will affect Bitcoin deals made over social-messaging apps such as WeChat . People in the industry say a wave of Bitcoin users in recent days migrated from WeChat to the encrypted messaging service Telegram. Industry advocates hail Bitcoin for allowing users to transact with each other without the involvement of a central authority. In reality, users access the market for virtual currencies via services and businesses that are centralized in real locations and therefore are susceptible to third parties. Any attempt by China to interfere broadly in the Bitcoin network would test that notion further.

The WSJ reports the as-yet unannounced policy was presented Friday to several industry executives at a closed-door meeting in Beijing. China accounts for nearly 90 percent of Bitcoin’s circulation.