Chinese vendors stop taking bitcoins as a result of new regulations

Chinese vendors that's Previously accepted bitcoins stopped doing so just days after China MOVED to ban banks from trading in the virtual currency.

Baidu said Friday it limits temporarily stopped accepting bitcoins as payment for a hosting optimization service it offers , Jiasule , blaming the move on the recent regulations , and also on the Bitcoin price fluctuations .

Jiasule PROMISES TO dramatically improved website performance and security . Back in October , the company unwrap the service would accept bitcoins , pointing to Their Growing Popularity in the country .

Local smartphone vendors and smartwatch Geak limit Bitcoin also jumped on the Bandwagon in late November . Several customers bought products Using the limit cryptocurrency , that's with Geak claiming it was the first Chinese company to Allow commercial Bitcoin Transactions .

Boot following China 's announcement of plans to regulate the virtual currency , said it would Geak Immediately cease accepting bitcoins .

A grocery store in the Chinese city of Harbin also gained some media attention in September as an early adopter of bitcoins . But on Sunday, the store said it was dropping the service.

China objects to Bitcoin Partly Because the cryptocurrency is not controlled by a central authority . In Reading and Listening , Bitcoin exchanges have been used to scam Investors, and the currency 's price Remains volatile , creating the risk For those who buy it , according to local Authorities .

The nation , however, will continue to Allow the public to buy bitcoins , but under tighter Scrutiny . Chinese regulators plan to carry out anti -money laundering measures with sites that deal in the virtual currency , Pendahuluan requiring users to register with real Their Identities When making Transactions .

Before China 's announcement , bitcoins were trading as high as $ 1,200. But since then , the price has fallen to below $ 1,000 , according to the Tokyo -based Mt. Gox exchange .

Chinese are buying the MSI Bitcoin as a form of investment , according to BTC China , the country 's largest exchange . Vendors adoption has still been in the early stages, BTC China 's CEO Bobby Lee said in October .

A few small merchants on Chinese e -commerce site Taobao, however, continue to take bitcoins . One that's Sells wine merchant said on Monday it would accept the virtual currency.