China banned bitcoin transactions at financial institutions in a first step to regulate the digital currency which has rapidly increased in value in recent months, Reuters reported. The central bank in a statement said digital currencies have not yet imposed threats to the financial systems in China, but they still pose potential risks. The People’s Bank of China, however, has not banned the individual use of the currency. On the Chinese bitcoin platform FXBTC.com, the yuan-bitcoin exchange rate fell by 20% after the statement was made.
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