China Makes Crypto Transactions Illegal, Prompting Bitcoin Market Crash

It is a mole beating game.

cipher suppression

China has declared all cryptocurrency transactions and any related activities within its borders illegal – a massive crackdown that has sent bitcoin crashing again.

The cryptocurrency fell from a high of just over $45,000 early Friday morning to just under $41,000 around 7 AM ET.

The People’s Bank of China announced this in a question and answer posted on its website. It was stated in the post, as translated before CNBC.

Those who work on foreign exchange exchanges will also be investigated. The bank also announced that it is working to improve its systems to monitor cryptocurrency-related activities.

Basically, crypto seems to be gone in China, at least for now.

stamped

The news comes after China began cracking down on cryptocurrency mining in May, days after banning all financial institutions and payment firms from doing any crypto-related work.

The Chinese government will “resolutely crack down on bitcoin mining and trading behavior, and resolutely prevent the transfer of individual risks to society,” according to a statement issued at the time, as translated by South China Morning Newspaper.

Just like today, previous crackdowns also led to bitcoin’s slide, due to mass selling. Its value fell by almost half between April and July of this year, Bloomberg reports.

The government has confirmed that it is cracking down on energy-intensive crypto-mining activities to achieve stringent carbon targets. The country plans to become carbon neutral by 2060.

cat and mouse

Cryptocurrency companies were not shocked by this week’s announcement.

“Chinese regulators have always been extreme in their views and these comments are nothing new,” said Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore. Bloomberg.

Interestingly, the constant announcements may indicate that China is going through a difficult time completely eliminating cryptocurrency activity.

“The interesting part is also why they keep making these statements,” Avear added. “This is likely because they felt a constant relentless activity in China and then had to move forward.”

Read more: Bitcoin Tanks 8%, Ethereum Drops 11% as China Intensifies Crackdown on Cryptocurrency [CNBC]

More about bitcoin: Bitcoin.org, which taught users not to be scammed, is hacked and replaced with scams

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