The price of bitcoin lost 14 percent over the weekend as one the largest bitcoin exchanges in the world confirmed that transactions have been affected by a clampdown from the Chinese government.
BTC China - in the top five of the most commonly used bitcoin exchanges, according to Bitcoinity.org - said over the weekend that it had suspended yuan deposits from the China Merchant Bank, following guidance the bank had posted on its website. CEO of BTC China Bobby Lee confirmed to CNBC that the exchange had also received a telephone call from the bank Monday, formally directing the exchange to cease transactions from its account.
Lee said that the bank had indicated the guidance came from "their superiors in the Beijing main office after a directive from the central bank." Lee added that all other withdrawals from other Chinese banks were as normal.
The often volatile price of the virtual currency took another hit on the news, with the price of one bitcoin falling to $424 by Monday morning, according to industry website CoinDesk, a fall of around 14 percent from Friday's price.