China’s central bank on Friday promised to crack down on illegal activities trading of cryptocurrencies, banning foreign exchanges from providing services online to continental investors.
The People’s Bank of China, which has deemed all cryptocurrency-related transactions to be illegal, said it will ban financial institutions, payment companies and internet companies from facilitating cryptocurrency trading and will strengthen monitoring of risks arising from such activities.
Cryptocurrency Shares Declined After China Expanded Its Crypto Crypto Industry Crackdown, With Argo Blockchain Plc in 10% drop in London, while Bitcoin miner Northern Data AG lost 2% in Frankfurt. In trading US pre-market, MicroStrategy Inc, the company of software company with over $ 5 billion in asset cryptographic, lost 3.5%. Shares of Riot Blockchain Inc and Bit Digital Inc were down about 5%.
Comments from the People’s Bank of China brought cryptocurrencies down, the markets were in tension as China has tightened its grip on sectors ranging from private education to digital games and the debt crisis of real estate developer Evergrande has increased the tension.
Bitcoin is in 7.8% drop to $ 41,220, while Ether, EOS, Litecoin and Dash are in drop of more than 7%.
This year China has imposed tight scrutiny on the cryptocurrency sector amid growing concerns about the risks of fraud, money laundering and excessive energy consumption. The country is a dominant player in the cryptocurrency market and as of April had 46% of the global hash rate, a measure of the computing power used in mining and processing, according to the Cambridge Bitcoin Electricity Consumption Index.
China’s central bank says it will continue to put pressure on the cryptocurrency market and, in July, the central bank pledged to maintain strong regulatory pressure on cryptocurrency trading and speculation. China’s crackdown was part of the triggers for Bitcoin’s price plunge in May as the largest cryptocurrency struggled to regain previous highs above $ 60,000.
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