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| China says all cryptocurrency-related transactions are illegal and must be banned ©exon360 |
China has banned financial institutions and payment companies from providing services associated with cryptocurrency transactions, and warned investors against speculative crypto trading.
Ten agencies, including the financial institution also as banking, securities and exchange regulators, vowed to figure together to uproot "illegal" cryptocurrency activity, the primary time the Beijing-based agencies have joined forces to explicitly ban all cryptocurrency-related activity.
"In the history of crypto market regulation in China, this is often the foremost direct, most comprehensive regulatory framework involving the most important number of ministries," said Winston Ma, NYU school of law adjunct professor.
The move comes amid a worldwide cryptocurrency crackdown as governments from Asia to the us fret that privately operated highly volatile digital currencies could undermine their control of the financial Analysts say authorities also see cryptocurrencies as a threat to China's own sovereign digital-yuan, which is at a complicated pilot stage
Bitcoin , the world's largest cryptocurrency, dropped quite 9% to $40,693 on the news, having earlier been down about 1%.
Smaller coins, which usually rise and fall in tandem with bitcoin, also tumbled. Ether fell 10% while XRP dropped an identical amount.24 Sep - 09:55:56 - CHINA STATE PLANNER SAYS ISSUES NOTICE ON CRACKDOWN OF CRYPTOCURRENCY MINING
— db (@tier10k) September 24, 2021
"There's a degree of panic within the air," said Joseph Edwards, head of research at cryptocurrency broker Enigma Securities.
"THOROUGH CLEANUP"
Bitcoin and other cryptocurrencies are mined by high-powered computers competing to unravel complex mathematical puzzles in an energy-intensive process that always relies on fossil fuels, particularly coal.
Virtual currency mining had been an enormous business in China before May, accounting for quite half the world's crypto supply, but miners are moving overseas.
In China websites getting crack down on all cryptocurrency trading with a ban on foreign exchanges.
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