‍Concerns over Chinese regulation of bitcoin are thought to have caused the cryptocurrency to fall by four percent. The price of bitcoin fell from a one-month high on Wednesday, after a Bloomberg report cited sources at bitcoin exchanges in China saying the People's Bank of China had summoned some smaller exchanges to a private closed-door meeting.

The central bank announced last month it was investigating trading at some of the biggest Chinese players to fend off market risks. One person attending the meeting, who wanted to remain anonymous, told Bloomberg that money laundering was “among the topics on the agenda”.

According to Reuters, market participants worry Beijing will seek to clamp down on domestic bitcoin trading as it seeks to stem a flow of capital out of the country that has put pressure on the yuan.

China plays an important role in bitcoin and is thought to be the largest trader of the currency by volume, although its trading volume fell last month after China's three largest bitcoin trading venues started charging transaction fees, in an attempt to suppress speculation and prevent big price swings, according to statements issued by all three companies.

The People’s Bank of China has not commented on the closed-door meeting, which has been widely reported in international media.

(Source: Reuters)