Bitcoin Slips to About $420 as BTC China Halts Transactions to Merchants Bank Accounts

bitcoinReuters

BTC China, the country's largest bitcoin exchange, has halted local currency deposits to accounts at China Merchants Bank, as lenders close tie-ups with bitcoin exchanges amid rising government regulations to check trading in the popular digital currency.

The move is to ensure security of client funds and stable operations at the exchange, according to BTC China.

Following the development, bitcoin prices fell below $450 (£268, €325) on 27 April. The price continued to decline on 28 April, and is trading down $6.31 at $423.35 as at 6:39am BST, according to Coindesk.

The month's low is $360 on 10 April.

On 25 April, Merchants Bank said its customers would no longer be able to do bitcoin transactions using their accounts at the bank, following the People's Bank of China's ban on digital currency dealings of financial institutions.

"We saw the bank's statement and we took the initiative," BTC China's chief executive officer, Bobby Lee, said.

The suspension has not affected the exchange's operations so far as the exchange can transact funds to clients' accounts at other lenders, according to Lee.

Currently handling more than 75% of bitcoin trades in yuan, BTC China is the biggest Chinese bitcoin trading platform. It is followed by exchanges FXBTC and Bter, with trading shares of about 14% and 8%, respectively, according to Bitcoinaverage.com.

The Chinese yuan represents about 10% of bitcoin trades across the globe, and is the second-most used currency in bitcoin trades after the US dollar. Therefore, investors are closely watching all regulatory developments in China related to digital currencies

In December, the People's Bank of China banned financial institutions from handling transactions in bitcoin, as the central bank was concerned about financial stability amid soaring volumes of digital currency trades in the country.

Subsequently, a number of banks announced that they were withdrawing support to digital currency exchanges.

BtcTrade, a Chinese exchange, earlier said that a branch of the Agricultural Bank of China in Hangzhou would close its account if it continued bitcoin-related settlement services through it.

Other exchanges which announced account closures include Huobi.com and Btc100.org, according to Bloomberg.

Thousands Protest Against Education Reforms in Venezuela

An anti-government protester wields the Venezuelan flag and kicks back a gas canister to police during anti-government demonstrations.Reuters

Thousands of demonstrators took to the streets of Venezuela's capital Caracas in fresh protests against embattled president Nicolas Maduro.

An estimated 3,000 mainly young protesters marched in protest against controversial education reform plans and restrictions on the right to participate in demonstrations.

Scores of people also demonstrated in several other cities in Venezuela on Saturday, including Valencia and Maracaibo.

Some protesters carried banners etched with slogans such as "education is not indoctrination", "protesting is my right", and "fight for education that teaches us to think and not obey".

Venezuela's Interior Minister Miguel Rogriguez Torres told state television that around 23 people, including eight minors, had been detained by police for setting up roadblocks in eastern and south-eastern Caracas, the AFP reported.

A young protester is detained by police during protests against education reforms in Venezuela.Reuters

The unrest is the latest in a series of violent anti-government protests that have claimed at least 41 lives and injured over 700 since February, and comes after Venezuela's Supreme Court issued a ruling on Thursday which requires demonstrators to seek prior authorisation before staging rallies.

The education ministry has also embarked on consultations to reform Venezuela's basic school curriculum – a move that has been criticised by political opponents as an attempt to indoctrinate students with socialist propaganda inspired by Maduro's predecessor Hugo Chavez, who died last March.

Venezuela has been beset by severe shortages of basic goods, power cuts and crime, prompting widespread popular discontent. The country also has one of the highest inflation rates in the world and remains deeply divided as Maduro grows increasingly unpopular.

Demonstrators confront police as they protest against the government of President Nicolas Maduro in CaracasReuters

Protests have subsided recently but sporadic demonstrations have continued in eastern parts of Caracas, where anti-Maduro sentiment runs deep.

In December, Maduro's ruling United Socialist Party won a narrow victory in Venezuela's municipal elections with 54% of votes, while the opposition coalition, led by Henrique Capriles, claimed 44%.

In the presidential polls in April 2013, Maduro claimed a mere 1.5-percentage-point victory over the opposition.

North Korea Calls South's Park Geun-hye a 'Prostitute' and Obama a 'Pimp'

South Korea's President Park Geun-hye and U.S. President Barack Obama - Reuters

North Korea has called South Korean President Park Geun-hye a "prostitute" at the hands of "pimp" Barack Obama.

The official Korean Central News Agency (KCNA) quoted the Committee for Peaceful Reunification of Korea (CPRK) as saying: "Park Geun-hye's recent behaviour with Obama was like a mean immature girl begging gangsters to beat up someone she does not like. Or a crafty prostitute eagerly trying to frame someone by giving her body to a powerful pimp."

Although North Korean mouthpieces often make such verbal attacks against South Korea and its leaders, the latest diatribe is seen as rather unedifying by their own standards.

The North Korean remarks follow a two-day visit by President Obama to South Korea, during which the two allies condemned North Korea's ambitions to press ahead with its contentious nuclear programme.

Reacting to this, the CPRK said: "If Obama and Park Geun-hye believed that they could change our minds with threats and blackmailing, they can't be more foolish.

"In particular, Park Geun-hye continued to viciously take issue with out dignity, system and nuclear programmes... while meeting with Obama. The latest visit by Obama only reaffirmed our long-held belief that might, not words, are the only option to deal with the old enemy US and strengthened our resolve and determination to stick with our policy to fight a full-scale nuclear war."

North Korean Leader Kim Jong-un Holds High Level Meeting and Visits Military Installations

North Korean leader Kim Jong-un has held high-level talks with the country's top military commission and paid a series of visits to key military installations amid the Korean peninsula tensions.

The talks took place in order to decide on key organisational matters of the Central Military Commission, according to the state-run Korean Central News Agency (KCNA).

The mouthpiece said: "He [Kim] stressed the need to enhance the function and role of the political organs of the KPA [Korean People's Army] if it is to preserve the proud history and tradition of being the army of the party, win one victory after another in the confrontation with the US and creditably perform the mission as a shock force and standard-bearer in building a thriving nation."

The commission is a key organisation in the communist nation. Although the exact date of the discussions has not been mentioned, they are believed to have taken place on Saturday coinciding with US President Barack Obama's visit to South Korea.

Kim and other senior North Korean authorities "discussed issues arising in further developing the KPA into the powerful Paektusan revolutionary army faithful to the party, the leader, the country and its people," reports KCNA.

They also discussed ways to "win victory... in the confrontation with the US".

Kim had earlier asked the North Korean troops to prepare for an imminent battle with the US.

Afghan Taliban Claims it Shot Down British Helicopter in Kandahar

Five British troops have been confirmed dead after a helicopter crash in southern Afghanistan.Reuters

The Islamist militant group Afghan Taliban has claimed responsibility for the crash of the British helicopter in Kandahar which killed five service personnel.

The outfit has said it had brought down the aircraft using a "secret weapon" as the helicopter was on a routine mission.

In a telephone interview with the Guardian, the group's spokesperson Qari Yousuf Amadi said: "This village is a mountainous area. The helicopter was trying to manoeuvre and was targeted by the Taliban. A lot of Isaf [International Security Assistance Force] soldiers were killed. These past 14 years they are always saying it is a technical problem but it was not."

However, the group is notorious for jacking up casualty figures and claiming attacks, which were not carried out by them.

The Taliban spokesperson earlier sent out a text message to the media saying: "Today, the mujahedeen hit the foreign forces' helicopter with a rocket, 12 soldiers on board were killed."

An investigation is under way into the crash that took place about 30 miles from the Pakistan border.

Since 2006, 453 British troops have been killed in Afghanistan including the latest death toll.

David Cameron in a statement said his "heart goes out to the families and friends of those killed in this terrible tragedy".

"Every British fatality is a source of deep sadness. This latest incident, which has cost the lives of five UK personnel, brings home to us all once again how our armed forces continue to put their lives on the line to help the people of Afghanistan. I cannot high enough tribute to each and every one of them for the job that they do and the sacrifices that they make."

Prince Harry was said to be "deeply saddened" by the incident as the victims reportedly include his friends.