China's largest e-commerce group Alibaba has decided to ban all sales of Bitcoins and Bitcoin mining equipment on their websites, due to regulations made by the Chinese central bank in December. Taobao Marketplace is one of the main platforms that links buyers and sellers together from Alibaba and this is where Bitcoins and equipment for mining the cryptocurrency will be banned.
The Chinese central bank disallowed the banks of China to handle any Bitcoin transactions in December, causing the Bitcoin to fall rapidly in value and now it seems that the Chinese people will have an even harder time using the cryptocurrency.
The ban of Bitcoins and equipment to mine it is to try and protect users overall Alibaba claims. Alibaba has not accepted Bitcoins as a payment method on any of their platforms and their Alipay payment system doesn't support sites accepting Bitcoins.
“Alibaba’s new rules might be a result of recent central bank regulations and concerns about risks associated with Bitcoin,” Said Wang Weidong who is an analyst with the Shanghai based IResearch, he continued to state that "The changes will have quite a big impact on Bitcoin trading in China."
Several other third party payment systems in China has also agreed to stop processing Bitcoin transactions. BTC China which is one of the largest Bitcoin exchanges in China received notice from YeePay and TenPay that they would no longer support transactions to and from their exchange.
The Chinese users now have the option to buy specific vouchers and redeem them for money in the Bitcoin exchange, buying and selling Bitcoins this way through.