China’s central bank warns financial institutions of Bitcoin risks

China central bank People’s Bank, Chinese Ministry of Industry and Information Technology, and another three authorities in finance issued today a notice on Bitcoin, cautioning financial institutions and payments services against risks.

China moved on Thursday to restrict its banks from using Bitcoin as currency, citing concerns about money laundering and a threat to financial stability. The action comes as monetary authorities around the world have begun to confront the issue of Bitcoin, a virtual currency whose value has soared in recent months as interest in it has spread. Part of its rise has been driven by intense demand for the virtual currency in China.