According to the Reuters report, China’s most powerful regulators announced a complete blanket ban on all crypto transactions and mining. China intensified its crackdown on cryptocurrencies on Friday in a sudden move to put a complete ban on cryptocurrencies. Ten agencies, including the central bank, financial, securities, and foreign exchange regulators, vowed to work together to root out “illegal” cryptocurrency activity. Earlier, China had banned crypto mining in some provinces.
Regulators site environmental concern over crypto mining.
Chinese regulators expressed environmental concerns, saying that “mining,” the energy-intensive computing process through which bitcoin and other tokens are created, is hurting global environmental goals. Chinese government agencies have repeatedly raised concerns that cryptocurrency speculation could disrupt the country’s economic and financial order, one of Beijing’s top priorities. It is no secret that China also sees cryptocurrencies as a threat to its sovereign digital yuan, which is at an advanced pilot stage. The People’s Bank of China has said that cryptocurrencies must not circulate.
Overseas crypto exchanges are barred from providing services to China-based investors.
The People’s Bank of China has also made clear that overseas exchanges are barred from providing services to China-based investors. It also barred financial institutions, payment companies, and internet firms from facilitating cryptocurrency trading nationally. The world’s leading cryptocurrency, bitcoin, dropped more than 9% before paring those losses. It was down 6.6% at $41,937 around 12:00ET. Altcoins also followed bitcoin and witnessed a significant tumble. China’s crackdown on crypto also hit cryptocurrency and blockchain-related shares, although they clawed back some of those declines in morning U.S. trading. At the time of writing, bitcoin is trading at just above $42,000. Several other countries across the world are also working on crypto regulations.