China 's central bank has issued a warning to institutional and individual investors to take a rational approach to virtual currency investing following bitcoin 's recent large price rise . Government officials and officials of BTCC , one of China 's leading bitcoin trading companies , warned against its potential operational risks and requested the company to undergo " self - inspection " according to the law . Bitcoin prices had showed abnormal fluctuations, the Shanghai head office of the People’s Bank of China (PBOC) said in a notice. The officials emphasised that bitcoin is not a currency and ca n't be circulated as a real currency in the market . Last Thursday , bitcoin fell 20 % in one day .
China 's central bank has issued a warning to institutional and individual investors to take a rational approach to virtual currency investing following bitcoin 's recent large price rise . Government officials and officials of BTCC , one of China 's leading bitcoin trading companies , warned against its potential operational risks and requested the company to undergo " self - inspection " according to the law . The officials emphasised that bitcoin is not a currency and ca n't be circulated as a real currency in the market . Last Thursday , bitcoin fell 20 % in one day .