Recently, the trendy cyber currency Bitcoin has triggered lots of arguments and concerns. Economists from around the world have not been able to give a precise definition so far what exactly Bitcoin is. Finance ministries in different countries try to invent urgently rules and regulations supervising the cryptocurrency circulation. It is known that the most popular way to fight against something unfamiliar is to ban it. Indeed, it is easier to ban something than to scrutinize the ins and outs of a problem. So, the People’s Bank of China decided to pursue exactly this policy. The bank’s authorities stated their official stance barring financial institutions from handling Bitcoin transactions. In its communique, China’s Central Bank highlighted that at present “Bitcoins do not pose any threat to the financial stability,” however “there are tangible risks for the financial system”. In addition, the Central Bank also called for enhanced control of online trading platforms for Bitcoins in order to defend against the possibility of money-laundering. The Central Bank is going to struggle against the new currency usage amid fears of fraud and abuse. Being the second largest global economy, the official standpoint of its Central Bank is of great importance for all market participants. “The Central Bank’s policy is not supposed to impact on exchange rates on China’s biggest Bitcoin trading platform. However, the government has recognized Bitcoin, it has not claimed it as illegal,” a Chinese Bitcoin trader commented on the communique. It should be reminded that Bitcoin is a virtual currency which has seen its popularity soar among Chinese investors. Bitcoin Average website shows that the People’s Republic of China accounts for 62% of the total global Bitcoin market. Meanwhile, China’s BTC was able to surpass Japan’s Mt. Gox in terms of the e-currency trading volume. However, individuals are free to take part in online Bitcoin transactions taking on risks themselves.