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Bitcoin falls after China tightens its stance on cryptocurrencies.

Bitcoin falls after China tightens its stance on cryptocurrencies.
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Written by Zack Motion

Bitcoin falls after China tightens its stance on cryptocurrencies.

China’s crackdown on cryptocurrency is getting tougher.

All cryptocurrency-related commercial activities are unlawful, according to Chinese government institutions, including the country’s securities regulator and the People’s Bank of China (PBOC), which stated in a statement on Friday that they will crack down on illicit activity involving digital currencies.

According to the agencies, foreign crypto exchanges will be barred from selling services to Chinese residents via the internet.

The price of Bitcoin (XBT) dropped by around 5% as a result of the announcement. Another popular cryptocurrency, Ethereum, was down 9%.

China will establish “new methods” to counter the hazards presented by cryptocurrencies, according to the authorities. China will progressively phase out crypto mining activities, and no new mining projects will be approved, according to a separate statement from the National Development and Reform Commission.

The pronouncements are the latest in a string of severe anti-crypto measures from China.

As part of the government’s goal to establish financial stability, Chinese Vice Premier Liu He told a gathering of finance officials in May that the government would “crack down on bitcoin mining and trading activity.” Financial institutions and payment businesses should not participate in any cryptocurrency transactions or provide cryptocurrency-related services to its customers, according to financial and banking watchdogs.

The procedures aren’t solely intended to reduce financial risk. Bitcoin mining systems consume a lot of computing power and electricity, which raises environmental issues.

China was on track to produce more than 130 million tons of carbon dioxide.

Beginner’s guide to bitcoin: What to Know Before Investing in Crypto
As part of its goal to establish financial stability, Chinese Vice Premier Liu He informed a gathering of finance officials in May that the government would “crack down on bitcoin mining and trading activity.” Financial institutions and payment businesses should not participate in cryptocurrency transactions or provide crypto-related services to its customers, according to financial and banking watchdogs.

The actions are not solely aimed at reducing financial risk. The machines required for bitcoin mining consume a lot of computing power and electricity, increasing environmental concerns.

According to a study published in Nature Communications, China is on track to emit more than 130 million metric tons of carbon by 2024. That’s more than the Czech Republic and Qatar together produced in annual carbon emissions in 2016.

This kind of output is also harmful to China’s ambitious climate-change ambitions. President Xi Jinping has pledged to make China carbon neutral by 2060, and the country is already working to keep carbon emissions from other industries under control.

Source: Laura Smith of CNN Business

Bitcoin falls after China tightens its stance on cryptocurrencies.

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Zack Motion

I am a celebrity blogger, music artist and a student. ZackMotion.com is the No.1 African trused art and entertainment portal. For African music and entertainment news we are No.1 CONTACT US NOW +233500638323

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