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Sunday, October 24, 2021

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“All transactions are illegal”

The price of the bitcoin plummeted more than 3 percent and lost 44,000 Dollars after the People’s Bank of China asserted that all transactions with digital currency “are illegal.”

The new attack by the Chinese government also weighed down the main currencies on the market, such as ether, which fell 6 percent. In addition, it caused drops of 5 percent in other currencies such as EOS, Litecoin or Dash.

China’s crackdown on bitcoin began shortly before the summer, when the People’s Bank said that digital currencies could not be used to make payments because they are not real money.

In a wave of repression that followed, the Chinese government targeted miners, the people who create cryptocurrencies with their work.

China attacks crypto market amid Evergrande crisis

Now, in the midst of the Evergrande crisis, the People’s Bank of China went further and directly described all transactions with bitcoins and other cryptocurrencies as illegal.

Besides, andThe Chinese issuer assured that online cryptocurrency services to Chinese clients are also illegal, which caused falls of 3 percent in some world reference exchange houses, as is the case of Coinbase.

According to the guidelines released this Friday by the regulators of the Asian giant, eradicating cryptocurrency mining is an urgent task, lor that the government justified to comply with its guidelines on carbon emissions.

A jug of cold water for the market

The news has fallen like a cold water jug ​​for the crypto market, which was beginning to soar after fears sparked by the Evergrande crisis.

The truth is China is a dominant player in the cryptocurrency sector and had a 46 percent share as of April of the global hash rate, a measure of the computing power used in mining and processing.

By classifying mining activities as illegal, it is foreseeable that this rate of mining could be drastically reduced, which would affect market activity.

But what he has made very clear the Bank of China is that it will continue to maintain pressure on crypto assets. Among the experts, this measure started in summer was understood as a way to protect and promote the use of the digital yuan.

China will ban foreign brokers from providing services in the country

For that very reason, The Bank of China stressed that it will expressly prohibit international exchanges from providing services investment to Chinese customers.

However, the Chinese issuer’s statement did not prohibit the possession of digital currencies, although the agency did emphasize that they are being used more and more in criminal activities, such as gambling or illegal fundraising.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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