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Two more Chinese banks to close bitcoin trading accounts

Published on May 8, 2014 3:14 PM

SHANGHAI (Reuters) - China Guangfa Bank and Shanghai Pudong Development Bank Co Ltd said they had banned their customers from using bank accounts for trading bitcoins, the latest blow to the virtual currency trading business in China.

The announcements, posted on the banks' websites on Wednesday, said institutional and retail customers will not be allowed to use their accounts to purchase or sell bitcoins as well as other virtual currencies.

If such practices were detected, the accounts would be suspended or closed down.

This comes after bank accounts of China's two largest bitcoin exchanges at certain domestic banks were shut down in mid-April.

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