Investing.com - Bitcoin prices pulled back on Wednesday, after a Bitcoin bank in Canada was forced to shut down after hackers stole $600,000 worth of the virtual currency.
BTC/USD fell to a session low of $633.65 on Slovenia-based BitStamp, before trimming losses to last trade at $659.65 during U.S. morning hours, down 1.55%, or $10.35.
The price of a Bitcoin on Bulgaria-based BTC-e dipped 0.4%, or $2.65, to trade at $648.00.
According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency lost 1.5% to trade at $653.80.
Canadian-based Bitcoin bank Flexcoin said on Tuesday that it was closing down after hackers stole 896 Bitcoin worth nearly $600,000.
"As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately," the company said in a statement.
The news comes less than one week after Mt. Gox, once the world's biggest Bitcoin exchange, filed for bankruptcy protection in Japan, saying it may have lost approximately 850,000 Bitcoin worth nearly $500 million after hackers gained access to its systems.
The Japanese government is preparing to increase regulation of Bitcoin in the wake of the unexpected collapse of Tokyo-based Mt. Gox, including imposing taxes on transactions with the crypto-currency, according to the Nikkei Newspaper.
The report added that the Japanese cabinet will reaffirm that Japan does not consider Bitcoin a currency, but rather a commodity.
Bitcoin is digital cash for the internet and it is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.