Bloomberg reports The People’s Bank of China has imposed a ban on all cryptocurrency-related transactions, according to its Sept. 24 statement.
Bitcoin fell nearly 5per cent on Friday after China’s central bank said it would crack down on cryptocurrency trading, banning overseas exchanges from providing services to mainland investors.
The largest cryptocurrency was last down 4.6per cent at US$42,309, with smaller coins that typically trade in tandem with bitcoin also tumbling. Ether fell over 8per cent while XRP slipped 7per cent.
The People’s Bank of China also said it will bar financial institutions, payment companies and internet firms from facilitating cryptocurrency trading, and will strengthen monitoring of risks from such activities.
“Crypto markets are in an extremely frail state overall, and these sorts of downswings speak to that; there’s a degree of panic in the air,” said Joseph Edwards, head of research at cryptocurrency broker Enigma Securities.
“Crypto continues to exist in a grey area of legality across the board in China.”
Shares in cryptocurrency and blockchain-related firms also came under pressure with U.S. listed miners Riot Blockchain, Marathon Digital and Bit Digital slipping between 4.1per cent and 5.1per cent in premarket trading. China-focused SOS slipped 1.2per cent while crypto exchange Coinbase Global fell 2.7per cent.
Walter Bloomberg says:
China Central Bank Says Issues Notice To Further Prevent, Dispose Of Risks From Cryptocurrency Speculation
— *Walter Bloomberg (@DeItaone) September 24, 2021
China State Planner Says Will Not Allow Cryptocurrency Mining Projects To Participate In Electricity Markets
— *Walter Bloomberg (@DeItaone) September 24, 2021
China Central Bank Says Overseas Cryptocurrency Exchanges Must Not Provide Services To Mainland Investors
China Central Bank Says Cryptocurrency-related Activities Are Illegal
— *Walter Bloomberg (@DeItaone) September 24, 2021
Bloomberg’s Francine Lacqua commented:
Is Beijing looking to stem capital outflows?
— Francine Lacqua (@flacqua) September 24, 2021
VanEck’s director, Gabor Gurbacs, predicts that China’s tough stance on crypto will make investors relocate “a lot of capital” from Asia to western countries.
China’s central bank PBOC seems to suggest that Bitcoin and crypto transactions are illegal. Below are Google-translated snapshot from their blog today. I believe this will push a lot of capital from China/Asia to re-invest in the West. Source: https://t.co/4BUVJMmN9g pic.twitter.com/y5XwxlaJOy
— Gabor Gurbacs (@gaborgurbacs) September 24, 2021
Affected by the policy, the tokens of several major exchanges that have mostly chinese users, falls sharply:
Affected by the policy, the tokens of several major exchanges, which are mainly Chinese users, fell sharply. HT fell 18%. pic.twitter.com/sq0xFGdSTZ
— Wu Blockchain (@WuBlockchain) September 24, 2021
Earlier this year, Chinese authorities said they would crack down on cryptocurrency mining, sparking a massive sell-off of bitcoin and other coins, also China Central Bank Restricted Banks and Payment Providers to Deal with Crypto-Related Businesses Including Exchanges.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
