China’s Central Bank issues warnings to major bitcoin exchanges – the bitcoin price fell $330 (almost 30%) between 5 and January 7

Officials from the People’s Bank of China (PBOC) met with representatives of major bitcoin exchanges this week to urge their compliance with „relevant laws and regulations”, according to statements from the central bank.

Overall, the public statements aimed to serve as a reminder to citizens who may be considering the digital currency as an investment, and both quoted a government circular released in 2013 saying that bitcoin is a virtual good and doesn’t have legal tender status.

The comments come at a time when bitcoin prices have been highly volatile, rising to near all-time highs only to decline by more than $250 within a few hours of trading.

An informal translation of the document reads: „Bitcoin is not a currency and shouldn’t be viewed as such. Those who invest in bitcoin should accordingly be aware of the risks it poses and protect their investment.”

The remarks come at a time when capital flight has emerged as a major concern in China, though it remains uncertain if this topic either influenced or was discussed during the meetings.

Source: coindesk.com