Investing.com - Bitcoin prices fell sharply on Monday, amid fresh indications China will take additional steps to crack down on transactions made using the virtual currency.
Bitcoin (BTC-eUSD) fell to a session low of $424.00 on Slovenia-based BitStamp, the lowest since April 14. Prices last traded at $434.68 during U.S. morning hours, down 2.29%, or $10.21.
The price of a Bitcoin on Bulgaria-based BTC-e shed 1.7%, or $7.34, to trade at $425.59.
BTC China, the country's largest bitcoin exchange, has halted yuan deposits to accounts at China Merchants Bank (3968.HK), as lenders break links from Bitcoin exchanges amid rising government regulations.
The move is to ensure the security of client funds and stable operations at the exchange, according to BTC China.
China Merchants Bank, which is headquartered in Shenzhen, has over 500 branches in mainland China and one in Hong Kong.
The People’s Bank of China banned financial institutions from handling Bitcoin transactions December, saying the digital currency doesn't have "real meaning" and lacks legal protections.
Bitcoin is digital cash for the internet and it is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.