Sunday, December 10, 2023

Bitcoin Drops below 30,000$ After China Crackdown

Bitcoin fell below $30,000 for the first time in more than five months, impacted by China crackdown on the world’s most popular cryptocurrency.

The digital currency has fallen to around $28,890 and has lost more than 50 percent of its value since hitting a record high of $64,870 in April.

China has ordered banks and payment platforms to stop supporting digital currency transactions.

The following orders on Friday to stop Bitcoin mining in Sichuan Province.

China Central bank Crackdown on Bitcoin

On Monday, China’s central bank said it recently rounded up several major banks and paying companies to encourage them to take tougher action on cryptocurrency trading.

Banks have ordered not to offer products or services such as trading, clearing and settlement of cryptocurrency transactions. Said a statement from the People’s Bank of China.

China’s third-largest lender, Agricultural Bank of China, said it was following the PBOC’s instructions. It would conduct due diligence on customers to stamp out illegal mining and cryptocurrency transactions.

The China Post Savings Bank also said it would not allow cryptocurrency transactions.

Alipay, a mobile and online payment platform owned by Chinese financial technology giant Ant Group, announced it will implement a surveillance system to detect illegal cryptocurrency transactions.

The latest move comes after authorities in the southwestern province of Sichuan ordered the closure of bitcoin mining operations on Friday.

Authorities ordered the closure of 26 mines last week, according to a statement posted on a Chinese social media site. They confirmed by a former Bitcoin digger.

Sichuan, a mountainous area in southwest China, is home to many cryptocurrency mines mostly large centers with racks of computer processors, due to the abundance of hydroelectric power plants there.

China Global Bitcoin Market

China accounted for about 65 percent of global Bitcoin production last year. With Sichuan being the second largest producer according to a study by the University of Cambridge.

“These concerns are compounded by the ongoing crisis in China. They concerns that adoption of Bitcoin and other digital currencies will be delayed due to environmental concerns”. Said analyst Fawad Razakzada at trading site Think Markets.

Last month, China’s cabinet, the State Council, announced that it would take action against cryptocurrency mining and trading. It will as part of a campaign to control financial risks.

Read more Snapchat Deletes Speed Filter Video Feature From App

Mike Novogratz, founder and CEO of Galaxy Digital, a financial services firm that specializes in crypto. He one of the largest crypto investors, told CNBC on Tuesday that China’s actions have “reduced retail debt.”

Beijing’s target is cryptocurrencies. But China’s state council or cabinet said last month it would tighten restrictions on bitcoin producers and traders.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inline Feedbacks
View all comments

Read more

Latest news
Would love your thoughts, please comment.x