China has again signaled intense hostility to cryptocurrency, this time summoning for cracking down on crypto-mining. Bitcoin (BTC) mining, to be blunt.
China State Council Financial Stability and Development Committee announced a statement last Friday. The report described its most recent conference and resolutions about the most urgent threats it requires to operate. This is the same authority that is responsible for managing risk in the middle kingdom’s financial system,
After first considering less-specific issues such as developing early warning operations to identify financial risks and improving smaller financial businesses. The statement stated it’s time to “crack down on Bitcoin mining and trading behaviour” as the cryptocurrency and other risks addressed could include visible threats, or inflation, or even both.
The Committee’s classification of Bitcoin as useless came just days after China’s Internet Finance Association, Banking Association, and the Payment and Clearing Association announced a mutual disclosure forbidding banks from accessing cryptocurrency investments. Concurrently, authorities blocked online platforms from receiving crypto companies’ services or even ads for their products.
The new statement didn’t exactly exempt Bitcoin operators. This is other than stating the government will “severely punish” illegal activities. The country’s Bitcoin ban is likely to be felt outside. This is since the country is one of the vital sources of miners.
Local Web Giants Also Affected By Middle Kingdom Crackdown
The Financial Stability and Development Committee’s report is also crucial due to the risk stated before Bitcoin was “supervision of platform enterprises’ financial activities.”
China’s continuous limitation of financial services activities will also affect the local web giants. The most apparent sign of China’s objection to economic ventures by its web businesses was removing Ant Group’s colossal IPO. The likes of Alibaba, Tencent, and Baidu will not explore other financial services ventures without investigation.
Bitcoin took another dip after China’s new disclosure, taking its value down by more than 25 percent over the last seven days. Many other cryptocurrencies have followed suit.
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