According to people familiar to the matter, the ban will only apply to trading of cryptocurrencies on exchanges, Bloomberg reported quoting people who requested not to be named. The bitcoin price index on trade website Coindesk slid below $3,000 for the first time in six weeks. He said that litecoin was dominated by Chinese investors.
ICOs has fueled the fast ascent in the value of all cryptocurrencies, from about $17-B at the start of the year, to a record high close to $180-B at the beginning of September.
China's regulators plan to tighten the digital currency activities in China. The bank said under national laws merchants in the country can not accept digital currencies as payment for goods and services, while cryptocurrency exchanges were also not allowed.
The price of Bitcoin and almost all other cryptocurrencies has dropped sharply in the last couple of days.
Chinese authorities expressed concern over the investment risks involved in crypto-currencies and ordered a ban on initial coin offerings, or ICOs, earlier this month. While the news isn't official yet, Caixin said it has seen the policy document and confirmed its authenticity with a source close to China's regulators.
While the country has long held a negative view of the digital currency, a report last week claimed that the Chinese government was planning to shut down local bitcoin exchanges.
Jamie Dimon, chief executive of JPMorgan Chase & Co, also came out strongly against bitcoin this week dubbing it a "fraud", and adding that it will blow up.More news: Russian Defense Ministry confident relations with North Atlantic Treaty Organisation will be restored
On the plus side, with the Bitcoin bull market being thrown into reverse, the price of graphics cards should descend to normality.
The worldwide value of bitcoin has plunged in recent days amid speculation that the Chinese authorities will shut down the trading platforms following last week's ban on initial coin offerings.
A number of China's top bitcoin exchanges are preparing to suspend their services following instructions from the government.
ICO is offering digital coins for sale for new cryptocurrency ventures.
The shutdown only affects Chinese traders, leaving worldwide exchange operations to continue as usual.
The newspaper said the Beijing city regulator held talks with crypto-currency exchanges in the city on Friday.