China has announced a new fee for bitcoin transactions in the country, in a move which is expected to have a significant impact on bitcoin users in the region.
The announcement is seen as a reaction to a recent crackdown on the use of the digital currency in China, where bitcoin is banned by the government.
The new fee is a one-time fee that will be levied at a rate of 5%, compared to the 5% rate that was imposed on traditional bank deposits in China.
The fees will be charged in bitcoin.
“China is moving in a direction that we think is good for bitcoin,” said Peter Vessenes, the CEO of WBTC, the world’s largest bitcoin exchange.
“The more we invest in bitcoin, the better we see the long-term growth.”
The announcement comes amid a series of crackdowns on the cryptocurrency, with China issuing a series in November banning trading in bitcoin and banning the digital asset from online payments.
Earlier this week, the Chinese central bank also announced that bitcoin and ether, two other cryptocurrencies, would not be accepted for payment in the banking system.
In a statement, the central bank said it is considering issuing new rules to regulate the virtual currency.
“We expect the new regulations to apply to the virtual currencies, as well as other cryptocurrencies and financial instruments, and to establish a clear rule on their regulation,” the statement said.