Baidu Stops Accepting Bitcoins After China Ban » WTF RLY REPORT
Baidu Inc., China’s biggest search engine, stopped accepting Bitcoins after the nation’s central bank barred financial institutions from handling transactions, triggering a drop in the virtual currency.
Bitcoin fell more than 20 percent and was quoted at 4,250 yuan ($863) as of 3:25 p.m. Shanghai time on BTC China, the most active online exchange where it’s traded. It lost 30 percent to $575 on Bitstamp, another web platform where the digital money is exchanged for dollars and other currencies.
A Baidu website-hosting venture started accepting the digital money on Oct. 14 as Bitcoins gained popularity in China, fueling a global rally. Prices topped $1,000 last week, compared with about $138 two months ago on Bitstamp. The People’s Bank of China said Bitcoin isn’t a currency with “real meaning” and can’t be accorded the same legal status.