China’s top regulators have banned cryptocurrency trade and mining, sending bitcoin prices plummeting.
On Friday, the Chinese government tightened the screws even more on bitcoin and other cryptocurrencies, vowing to root out what it calls “illegal activity.” The People’s Bank of China banned crypto mining across the country, stating that cryptocurrencies should not circulate in the same way as traditional currencies and that exchanges should not provide services to mainland investors via the internet.
Financial organizations, payment businesses, and internet corporations are also prohibited from assisting bitcoin trading, according to the BBC. Beijing will, quote, actively tighten down on virtual currency speculation and related financial operations and misbehavior in order to safeguard people’s properties and maintain economic, financial, and social order, according to a statement on the China Central Bank’s website.
The current Chinese campaign on bitcoin and other cryptocurrencies in May was a coordinated effort with other government organizations. The Chinese state council has pledged to take action against bitcoin mining and trade, alleging that digital currencies represent a financial risk to the world’s second largest economy.
The price of bitcoin and other cryptocurrency immediately dropped on Friday. In response, companies involved in the world of cryptocurrency and block chain related activities were down as well. coinbase, the cryptocurrency exchange that went public earlier this year ,moved lower and early Friday US trading