China’s long-lasting battle against cryptocurrencies saw a drastic move early on Friday. That came after the nation’s central bank declared that all crypto transactions are illegal, requiring a ban. The announcement had Bitcoin plummeting to $42,675 from $45,200 in two hours.
The leading Bank in China posted that all cryptos, including BTC and USDC, are illegal. Reuter’s reports show that PBOC will ban payment companies, financial institutions, and internet companies from crypto trading. Moreover, the bank vows to stiffen monitoring such activities. Also, it prohibited global crypto exchanges from serving China’s customers through the internet.
Elsewhere, the economic planning agency in China stated its quick moves to clamp on crypto mining, attempting to accomplish its carbon objectives. Keep in mind that China contributed to the crypto market crash back in May. Liu declared a clampdown on the crypto space, crashing Bitcoin’s price back then. Also, miners had to suspend their operations in China amid stiffer cryptocurrency regulations.
Also, China’s move on crypto in May led to GPU value declining in the country. That forced miners to sell their graphics cards. At that time, ASRock stated that decreased demand dropped graphic cards values globally. That way, it might be possible that prohibiting crypto transactions in the nation that accounts for nearly 70% of the worldwide cryptocurrency supply will affect the graphics cards market.
Keep in mind that regulators banned Chinese banks from handling digital assets in 2013. However, the authorities issued a notice in 2021. That indicates concerns that banks might be dealing with crypto trading activities, indirectly exposing the financial system to risks.
Friday’s reminder complained that BTC, ETH, and other cryptocurrencies disrupt financial systems. Moreover, the notice by the bank stated that digital tokens facilitate money laundering and different crimes.
The central bank targeted services provided by offshore cryptocurrency exchanges to investors in China through online platforms. Moreover, PBOC said that local employees working for foreign crypto exchanges operating would face the law.
Though China has been attacking cryptocurrency for almost a decade now, regulators appeared to stiffen their moves this year.
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