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Bitcoin may experience a huge drop as China’s top regulators ban crypto trading and mining. China’s most powerful regulators have intensified a crackdown on cryptocurrencies, with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major rivals and pressuring crypto and blockchain-related stocks.
All cryptocurrency-related activity, 10 agencies — including the central bank, financial, securities and foreign exchange regulators has been banned on Friday by Beijing based regulators. The regulators vowed to work together to root out “illegal” cryptocurrency activity.
Crypto ban in China was first initiated in 2014 and 2017 and in May 2021, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions.
The repeated prohibitions highlight the challenge of closing loopholes and identifying bitcoin-related transactions, though banks and payment firms say they support the effort.
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Friday’s statement is the most detailed and expansive yet from the country’s main regulators, underscoring Beijing’s commitment to suffocating the Chinese crypto market, according to New York University’s law school adjunct professor, Winston Ma.
“In the history of crypto market regulation in China, this is the most direct, most comprehensive regulatory framework involving the largest number of ministries,” he said.
