China is one of the biggest markets in the world. So, it’s no surprise that Bitcoin prices dropped significantly when they announce the crackdown for Bitcoin mining and trading.
Last Friday, China’s State Council Financial Stability and Development Committee explained that mining bitcoin and trading could create inflation, external risk, or both. Hence the crackdown.
The announcement came a few days after China’s Banking Association, Internet Finance Association, and Payment and Clearing Association signed a joint statement banning banks from utilizing cryptocurrency. Internet platforms are also barred from holding crypto company operations and others.
See also: BSP to license crypto trading and custody firms to prevent money laundering
No concrete punishment for violators has been announced. But China did say that they will “severely punish” such illegal activities.
This isn’t the first time we see China take steps to fight crypto. Back in March, it’s been reported that the country is waging war against Bitcoin and cryptocurrency.
Bitcoin prices continue to plummet in the past few weeks. From its highest price of around Php3 million, it fell for as low as 1.6 million when Tesla CEO Elon Musk announced they would be dropping Bitcoin and, now, China’s crackdown on cryptocurrency.
Via: The Register