BEIJING Dec 5 China's central bank warned on
Thursday that financial institutions should not trade the
digital currency bitcoin, saying that while it does not yet pose
a threat to China's financial system, it carries risks.
The central bank also said in a statement on its website
that it will act to prevent money laundering risks from bitcoin,
a prominent digital currency that is not backed by a government
or central bank.
It said however that ordinary individuals were free to use
bitcoin, so long as they took on the risk themselves.
It will also closely monitor risks associated with bitcoin.
Those risks include the possible use of the currency for illegal
activities and for speculation, it said.