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China to Enforce a Crackdown on Bitcoin Mining, Trading Activities

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  • The committee directed to start the crackdown on Cryptocurrency trade
  • Meeting chaired by Chinese Vice Premier
  • Measures for Controlling VolatilityVolatility and bringing stability in the Forex, Bond, and stock markets

Unending troubles for Bitcoin (BTC)

Trouble for Cryptocurrencies is unending, and this time it is China that is coming down heavily. State Council’s Financial Stability and Development Committee is cracking down on Bitcoin marketing and allied activities. According to Reuters, the crackdown is intended to ward off financial risks as per a statement by the Committee.

Reuters reports that in a meeting chaired by Vice Premier Liu He, the Committee decided to come down on unlawful activities in the securities market. It was the first time that a senior member of the ruling party was chairing the meeting. The latest measures were intended to control VolatilityVolatility and establish stability.

In the last few days, there has been a sharp increase in actions by China to regulate the cryptocurrency trade. A few days ago, three Chinese industry bodies enforced a ban on banks and payment companies providing crypto-related services. Liu is the second most powerful person in the Chinese Communist Party. If the state council follows his mandate, it means serious trouble for the Cryptocurrency trade in China.

Bitcoin (BTC) values tanks by more than 15%

The effects could be already seen with Bitcoin (BTC) tanking by more than 15%, and Etherium value has also fallen. The Chinese government is particularly sensitive about the decentralized nature of Cryptocurrency and would like to have regulatory control just like other aspects of the economy in the totalitarian state. Hong Kong has also asked the city’s market regulator, which gives cryptocurrency exchanges licenses to ensure that the exchange provides services to professional investors only.

 The state-run CCTV featured a Friday program that highlighted the systemic risks” of cryptocurrency trading. It labeled Bitcoin as a speculative instrument Rather than an investment tool to avoid troubles. The lack of regulation and anonymity can spawn all sorts of illegal activities like arms smuggling, money laundering, and drug dealings.

Curbs could have a significant impact on crypto trade says, expert

China is also one of the most important locations of crypto mining and accounts for 70% of the globe’s crypto supply. Therefore Chin’s crackdown will undoubtedly have significant implications on global crypto markets, according to the adjunct professor, NYU Law School, Winston Ma.

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https://www.reuters.com/technology/china-says-it-will-crack-down-bitcoin-mining-trading-activities-2021-05-21/#:~:text=TechnologyChina%20vows%20to%20crack%20down%20on%20bitcoin%20mining%2C%20trading%20activities&text=China%20will%20crack%20down%20on,Development%20Committee%20said%20on%20Friday.

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