Vera&John casino has suspended bitcoin deposits, despite having only announced it was to start accepting the digital currency in January.
The decision follows discussions with the Malta Lotteries and Gaming Authority with the LGA expressing concerns about the stability of the currency and risks associated with dealing in it.
Bitcoin has had another turbulent few months, seeing one of the largest exchanges, Mt Gox, collapse and the value of bitcoin continue to fluctuate wildly.
The value is currently around $500, down from a November 2013 high of more than $1,200.
