Bitcoin value halved thanks to China’s restriction on exchanges

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Bitcoin BTC - virtual moneyAfter hitting an all-time high in November 2013, digital currency bitcoin has fallen to less than half the value it was recently trading for.

This drop in value comes after reports that China has attempted to restrict trade in the virtual currency.

BTC China has said that local payment companies have been blocked from providing it with clearing services.It means that the firm – the world’s biggest Bitcoin exchange in terms of trading volumes – can no longer accept yuan-based deposits.

Experts have suggested that the crackdown was the result of the Chinese goverment’s worry that the local were using the site as a means to bypass currency controls in order to move their savings from outside of the country.

“China is trying to grow its domestic economy and rebalance it from an export and investment-based model to a consumer driven one over the next decade, and to do that the authorities want to keep as much yuan within the country as possible,” said Jinny Yan, an economist with Standard Chartered bank.

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