China's three major virtual currencies trading platform Bitcoin China, Coin Network, OKCoin currency have announced that they will cease trading business, the Chinese regulatory authorities so resolute and beyond imagination. I would like to know why China prohibits bitcoin. What is the reason, who can tell me?
This is the news link I saw before：
http://www.myzaker.com/article/59bf055a9490cb703500002b/What China did is ban banks that deal with Cryptocurrencies not the Cryptocurrencies themselves. Reason is simple, they are incapable of tracing any person to a transaction so government cannot ensure preventive measures against fraud, money laundering and other criminal activities. Its unlikely they will effectively eliminate Cryptocurrency trading completely. China is home to a large number of bitcoin mining farms but it appears they are too clamping down on this because they have consumed huge amounts of resources.