BEIJING (Reuters) - Local authorities in Beijing have ordered a halt to digital currency trading in the country and have called on Chinese bourses to alert users to block circulation of digital currency and immediately stop allowing new users to register.
The Chinese central bank earlier announced a ban on the initial offerings of the currency, which led to a decline in the value of "composition" by about 10%. Experts say the Chinese authorities are concerned about the fear of money being diverted to digital currencies, fearing the use of these currencies in money laundering, especially as it became a means of payment for many companies because of the availability of the possibility of transfer of funds without the need for a third party.
Economic reports indicate that China's decision could trigger major shocks in the growing virtual currency market, especially as China has been a major center for the formation and trading of currencies.