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Bitcoin Price Falls Due to Concerns on Legal Stances in EU and China

March 17, 2017 at 19:43 by Yahia Barakah

The price of Bitcoin declined on Friday, sending the virtual currency for its second day of losses as concerns grew in the market in regards to how the Chinese and European authorities will regulate Bitcoin.

People’s Bank of China Director of Business Administration Zhou Xuedong said last week that the central bank will continue monitoring Bitcoin exchanges within the country. Xuedong said that the digital currency can be used in manners that increase risks of money laundering activities, leveraged transactions, and customer funds security.

Following his comments, investors are anticipating that Chinese authorities will have more updates on Bitcoin regulations soon. China is widely expected to place heavy supervision on trading of the virtual currency and its exchanges in the country. Chinese demand for Bitcoin has a considerable effect on the price of the currency due to its large size, which gives updates of China’s policy towards Bitcoin a powerful ability to influence the market.

Meanwhile in Europe, Bitcoin enthusiasts await the European Union virtual currency legislation, which has received final amendments ahead of its compliance deadline in June. The legislation, which took two years of preparation, could require holders of Bitcoin to link their identities to their virtual currency wallet.

BTC/USD traded at 1,124.8 on Bitstamp exchange as of 19:15 GMT, from 1,098.0 at 06:50 GMT, the pair’s lowest level since March 10. BTC/USD started trading today at 1,171.6.

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