Earlier today, Chinese officials have moved to take their ban on the country’s commercial banks from using Bitcoin a step further. The so-called People’s Bank of China, outright violating the financial matters of its people, ordered all Chinese commercial banks to stop clearing payments to and from BTC (Bitcoin China Exchange), sending the price for Bitcoin, Litecoin and other crypto currencies tumbling — and destroying a good portion of their own population’s Bitcoin wealth (so much for being a “People’s Bank” as well as for Communism in general)!
Bitcoin businesses on the ground in China said, however, that this still dod not amount to a full ban of Bitcoin in China, they will wait and see how and where they can continue to legally operate inside China in certain areas, and that they are taking developments “one day at a time” for now.
Over in Europe, the slump was not quite as hard-felt but crypto currencies were also sharply down across the board.
Meanwhile, the London-based EBA (European Banking Authority) is set to follow its hands-off approach to crypto currencies the regulators mentioned to be “unregulated” and “not needing special permission” in an obiter to a statement issued on Friday.
This situation for now makes Europe one of the best places to be for all sorts of Bitcoin businesses. It is expected that this will continue until the European bureaucracy issues their own sets of rules — which may well take a few years and give Bitcoin start-ups sufficient room to breathe and meanwhile test and develop their business models freely in a market currently unspoilt by unnecessary intervention.