Cryptocurrency tanks further as China continues to intensify its crackdown against cryptocurrencies particularly by curbing the mining activity and informing major platforms and lenders that crypto trading is strictly prohibited.
Cryptocurrencies have been experiencing a couple of rough months because of various reasons such as coin mining and the increasing scrutiny policies of different governments around the world.
According to CoinDesk, Bitcoin lost 9%, as the trade dropped down to $32,700 per coin which is the lowest the currency touched in the past few weeks. The currency did revert a bit but unfortunately, it has lost almost half of its value since it touched an all-time high back in April.
Other cryptocurrencies are witnessing almost the same fate, where Ethereum fell by almost 14%. Dogecoin is the one that has been struck the most, the currency diving to a whopping 41% erasing all of the gains it made since April 2021.
China’s disapproval of cryptocurrencies is making it hard for them to survive. Within months of its aggressive approach to curtail the usage of currencies, they are now on struggling grounds to survive.
The People’s Bank of China stated that it has summoned Alipay and other top 5 lender companies of the country to “comprehensively investigate and identify” the cryptocurrency exchange and their dealers so they can put an end to the crypto trading. Alipay is one of the most popular online payment platforms which is owned by the Ant group of Jack Ma.
The People’s Bank of China stated that the trade through cryptocurrencies gives birth to illegal cross-border transfers of assets as well as money laundering and many other speculative financial activities.
The other 5 lenders were the Agricultural Bank of China, the Industrial and Commercial Bank, China Construction Bank, the Postal Savings Bank of China, and the industrial bank.
All the six companies which were banished from the usage of cryptocurrencies announced publicly that they will allow nobody to use their platforms for any sort of cryptocurrency-related activity.
On the other hand, the province of Sichuan ordered a halt on the crypto mining operations along with cutting off the power supply of various mining facilities in the province.
China does not officially ban cryptocurrencies but it has regulated it since 2013 when it declared officially that bitcoin is not a real currency and forbade the payment and financial institution from performing any transactions in it. This step was also taken to protect the status of the yuan as a flat currency.
According to the reports, this over-the-board crackdown against cryptocurrencies is also a way to assure that China’s state backs digital yuan gets more stability, which the authorities are trying to launch and implement to keep a complete check on the cash flows.