Cryptocurrency use by financial institutions has now been banned in China.
For the past week, cryptocurrencies have been the major talk of the town. Devastating bearish actions have gotten Bitcoin to trade below US$30,000. This has been a result of Elon Musk’s busy Twitter account. From Tesla making changes to their balance sheet to even more controversial tweets from Musk, Bitcoin and other altcoins have been set to plummet massively.
Since the beginning of the over a week-long bear market-dominating major coins and other altcoins, crypto investors and traders worldwide have suffered immense losses. This has resulted in accumulated negative sentiment associated with cryptocurrencies.
This has gotten the Chinese financial authorities worried for their citizens and economy.
It is not a new event that China has yearned for an anti-crypto reign. The recent bloodbaths have been a very good backing for their intentions. In the past, the banning of local exchanges and ICOs have signified their efforts to quell the use of cryptocurrencies in the nation.
Dating back to 2017, local Chinese exchanges had halted operations due to governmental directives and two years later, foreign exchanges were also blocked access to the nation.
The big news about the recent ban took a great toll on Bitcoin prices. This is paired with the already prevailing dip as a result of influence by Elon Musk. Bitcoin then dove further down to trade at $31,926 as at the time the ban was announced.
This was a very massive decline costing many investors and traders millions in major losses. However, a rebound got Bitcoin to then trade at around $39,791.88, as at the time of writing.
The recent declining value of Bitcoin drives the ban. It is seen as infringing on the safety of properties and therefore harmful to the economy.
The report was carried out by the National Internet Finance Association of China, along with the Payment and Clearing Association of China and the China Banking Association. The conclusion was based on the joint judgment hence leading to the latest crypto ban in China.
What do you think about the new Chinese crypto ban?
