A Bitcoin logo is displayed at the Bitcoin Center New York City in New York's financial district, U.S. on July 28, 2015. REUTERS/Brendan McDermid/File Photo BEIJING (Reuters) - China’s institutional and individual investors should take a rational approach to investing in virtual currencies such as bitcoin, the central bank said on Friday. Bitcoin prices had showed abnormal fluctuations, the Shanghai head office of the People’s Bank of China (PBOC) said in a notice. This prompted branch officials to meet representatives of a major bitcoin trading platform in China, BTCC. They cautioned against potential risks in the platform’s operations and asked it to carry out “self-inspection” according to the law, the bank said. It stressed bitcoin is not a currency and cannot be circulated as a real currency in the market. Reporting by Yawen Chen and Kevin Yao; Editing by Clarence Fernandez
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 .