Bitcoin exchange to resume trading following technical problems

One of the world's largest Bitcoin exchanges will soon be up and running again after "unusual activity" has forced it to stop trading for the past 10 days.

Tokyo-based MTGox has prevented any withdrawals from its exchange since February 7, causing the cryptocurrency to lose almost half of its value.

The problem stemmed from a loophole that allowed twice as many Bitcoins to be sent in certain transactions by those able to exploit it.

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A workaround to the problem faced by the exchange was achieved by technicians at Blockchain, who developed a "unique identifier" that will show whether transactions have been modified.

"With this new system in place, MtGox should be able to resume withdrawals soon," the firm said in a statement.

"At the beginning we will do so at a moderated pace and with new daily/monthly limits in place to prevent any problems with the new system and to take into account current market conditions."

Before the new system can be launched, MTGox will need to re-index around 32 million entries on the Blockchain, as well as implement and test a new Bitcoin withdrawal queue.

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The technical problems have contributed to the fall in value of Bitcoin from its $1,000 (£600) high in mid-January, to around $550 (£330).

One British man travelled over 6,000 miles to Tokyo to confront MTGox about his inability to withdraw his Bitcoin.

A new update will be issued by MTGox on Thursday.

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