Chinese vendors stop taking bitcoins as a result of new regulations

Last Thursday's ban on Chinese banks trading in the virtual currency is having repercussions

Chinese vendors that previously accepted bitcoins stopped doing so just days after China moved to ban banks from trading in the virtual currency.

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

Jiasule promises to improve website performance and security. Back in October, the company announced the service would accept bitcoins, pointing to their growing popularity in the country.

Local smartphone and smartwatch vendor Geak had also jumped on the bitcoin bandwagon in late November. Several customers had bought products using the cryptocurrency, with Geak claiming that it was the first Chinese commercial company to allow bitcoin transactions.

But following China's announcement of plans to regulate the virtual currency, Geak said it would 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 addition, Bitcoin exchanges have been used to scam investors, and the currency's price remains volatile, creating 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, including requiring users to register with their real 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 bitcoin mainly as a form of investment, according to BTC China, the country's largest exchange. Vendor 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 merchant that sells wine said on Monday it would accept the virtual currency.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Internet-based applications and servicesbaiduregulationgovernmentinternet

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?