The crypto market is recording another day of declines, amid tightening restrictions on bitcoin activity in China. China’s central bank has summoned a group of banks and mobile payment apps, including the popular AliPay, and ordered a halt to any bitcoin activity that passes through them. Yesterday the Chinese government halted the supply of electricity to the coin miners and exacerbated the declines in the market.

This morning, the Central Bank of China issued a statement summoning the same companies and banks, including the Bank of China for Industry and Commerce, the Bank of China for Agriculture, the Bank of China for Construction, the Postal Savings Bank, and the AliPay mobile payments company AliBaba Group.

In response, Bitcoin is losing ground and falling below $ 33,000 per unit, almost half the record it recorded last April – about $ 65,000 per unit.

Atherium also dipped close to 7% and dropped to below $ 2,000, for the first time since May 23, thus completing a decline of about 21% per week. The Dogecoin traded for 24 cents, and the Ripple, which recently crossed the dollar threshold for the currency, retreated to just 68 cents a unit.

Just a week ago, Bitcoin was traded for $ 41,000, thanks to a tweet from Tesla founder Elon Musk that the company would consider accepting Bitcoin as a payment again, if mining of at least 50% of it is possible from green energy.

The Central Bank of China has explained the requirement that the use of cryptocurrencies be used for suspicious actions that interfere with China’s financial conduct, and that this poses a risk of money laundering and other illegal actions. The bank expressed its position on the issue as early as 2017, noting that no financial institution should provide a service when it comes to trading digital currencies.

By Editor

Leave a Reply