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The relationship between cryptocurrencies and China definitely seems complicated year after year.
The National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China have issued a new ban against cryptocurrencies in China. The ban by the Central Bank of China is aimed at financial institutions and payment companies who will no longer be able to provide services involving cryptocurrency transactions, including Bitcoin of course.
The published statement reads:
"Recently, cryptocurrency prices have skyrocketed and collapsed, and speculative cryptocurrency trading has rebounded, seriously violating people's property security and disturbing the normal economic and financial order."
Another ban from China
The statement from the three entities is a clear call not to offer financial services or payment services in cryptocurrency as the volatility, particularly evident these days, makes it an unreliable and insecure product. The statement also points out that cryptocurrencies have no realistic value and are extremely easy to manipulate.
The authorities in Beijing are not at all convinced of the goodness of cryptocurrencies so much as to deliver a new hard blow to the sector. Recall how back in 2017 exchanges and ICOs were banned from operating but despite this, the Chinese have never been prevented from owning cryptocurrencies. This is very surprising because China turns out to be one of the top Bitcoin producers in the world given the impressiveness of its mining farms.
Results of the ban
Obviously this new ban in China has hit Bitcoin causing its price to drop sharply. BTC at the moment loses 13% and still falls below $40,000 while Ethereum returns below $3,000 with a loss of 16%. Declines that cost dearly to crypto that already come from a difficult week marked by Elon Musk's tweets. This was an expected and foreseeable drop given that many cryptos have had a very positive period, many of which have seen their value multiply and even set new historical records.
What are your predictions? let me know in the comments!
Bye! ??
Sources:- Images : Google Search
- Informations : internet, CoinGecko
