China bans crypto transactions – ThePaypers

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According to Bloomberg, China has banned all crypto transactions and is committed to ending the illegal mining of cryptocurrencies.

Crypto-related transactions will be considered illicit financial activities, including services provided by offshore exchanges, the People’s Bank of China said on its website. He added that cryptocurrencies, including Bitcoin and Tether, are not fiat currencies and cannot be put into circulation. China has long expressed its dissatisfaction with crypto because of its links to fraud and money laundering, as well as its excessive consumption of energy.

Bitcoin collapsed in the wake of the announcement, falling 6% to around $ 41,800 at 7:05 a.m. in New York City. China’s strict approach is part of the reason Bitcoin prices collapsed in May and struggled to regain all-time highs above $ 60,000. While there are likely still Chinese speculators on land, activity has already moved out of the country over the years amid increasingly stringent regulations, says Clara Medalie, research manager at the supplier. Kaiko data.

China is home to a large concentration of the world’s crypto miners, who need huge amounts of energy and thus run counter to the nation’s efforts to reduce greenhouse gas emissions. The country is a dominant player in crypto, and as of April 2021, it held a 46% share of the global hash rate, a measure of the computing power used in mining and processing, according to the index of Cambridge Bitcoin electricity consumption.

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