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China’s renewed crackdown on the cryptocurrency industry has wiped nearly $ 300 billion from the total digital currency market since Friday, when a major bitcoin mining hub ordered miners to shut down operations .
Bitcoin was down about 6.6% to $ 32,735.71 around 10:47 p.m. ET, breaking out of its 24-hour low of $ 31,179.05, according to data from CoinDesk.
Over the past few days, China has stepped up efforts to harness the country’s cryptocurrency industry.
Mining ban, PBOC warning
Authorities in China’s Sichuan Province on Friday ordered cryptocurrency miners to shut down operations, according to multiple media. Sichuan is one of the biggest bitcoin mining centers in China.
Many bitcoin mines in southwest China’s province were closed on Sunday, according to the state-backed tabloid Global Times.
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These aren’t new rules, but comments from the PBOC show how major Chinese regulators are stepping up scrutiny and pressure on cryptocurrency-related financial institutions.
China banned local cryptocurrency exchanges in 2017, forcing them to move abroad. This hasn’t stopped Chinese traders from buying and selling digital coins, although it has added a layer of complexity to crypto trading.
Chinese traders should move their Chinese Yuan to a platform to buy crypto. This would be done through a payment service like Alipay or a bank account. The latest PBOC reminder to financial institutions could therefore seek to further eradicate this.
Since Friday, when Sichuan authorities informed miners of the closure of operations, bitcoin has been down about 16%. The central bank’s advice added further pressure.
Other cryptocurrencies, notably Ether and XRP, were also down sharply on Monday night.
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