China’s “All Cryptocurrency Transactions Are Illegal” Rule… Bitcoin’s Crash

Bitcoin price plummeted as China made all cryptocurrency trading activity illegal.

The People’s Bank of China, the central bank of China, said in a statement on the 24th, “Cryptocurrency transactions of any kind are illegal financial activities,” citing examples such as Bitcoin, Ethereum, and Tether. announced that

He also warned that “overseas cryptocurrency exchanges that provide services to (China) residents are also illegal.”

“Cryptocurrency disrupts the economic and financial order and seriously threatens the safety of people’s assets,” he said.

After the US, China also… “Cryptocurrency investors are anxious”

Major foreign media such as AP and BBC reported that “It is not the first time that the Chinese authorities have cracked down on cryptocurrencies, but the People’s Bank of China’s announcement is the clearest sign that China is willing to block all kinds of cryptocurrency transactions.”

“China’s position on cryptocurrency is not new at all, but it is enough to put pressure on the cryptocurrency market,” said BJ Aiyaa, Asia Pacific manager at Luno, a digital cryptocurrency exchange.

“Recently, the U.S. Securities and Exchange Commission (SEC) has also taken a tougher stance on cryptocurrencies, making investors anxious,” he added.

China was the world’s largest bitcoin miner, thanks to lower electricity and computer hardware costs compared to other countries. As of 2019, China accounted for 75% of global Bitcoin mining energy use.

It has fallen to 46% this year due to continued crackdowns by the Chinese authorities, but still overtakes the United States, which is in second place with 17%.

Experts say that China is actively cracking down on cryptocurrencies because they are not under the control of financial authorities, weakening the power of the ruling Communist Party, and fearing that they could be used for underground economy and criminal activities.

When the People’s Bank of China issued a statement, the price of Bitcoin fell by more than 9%, and the cryptocurrency market was shocked, with Ethereum also plummeting by nearly 10%.

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