Many cryptocurrencies suffered tremendous losses
Bitcoin and other cryptocurrencies declined amid intensifying cryptocurrency crackdowns in China. China’s battle against cryptocurrencies began a long time ago. Last week, the country moved in to close major cryptographic mines. Local mines feed almost 80% of the world’s cryptocurrency trade despite the national trade ban since 2017.
The price of Bitcoin fell to $ 32,309. Bitcoin has suffered heavy losses in recent weeks, in part due to China’s crackdown.
But in recent months, several provinces have ordered the closure of mines as the country has become heavily fixated on industry. Sichuan Province ordered the closure of mines last week. Sichuan is a major nerve center, as it is the second most intense mining region in the country after Xinjiang. It’s no secret that cryptocurrency mining requires a lot of electricity. The cryptographic industry prospered in the province thanks to its cheap and abundant electricity. Chinese media reported that the supply of electricity to all cryptocurrency mines in the region was halted at midnight on Sunday.
Separately, a Chinese city with abundant hydropower intensified action to curb cryptocurrency mining. A government official said Ya’an promised to root out all ether and Bitcoin mining operations by 2021.
In May, the value of the world’s largest cryptocurrency fell due to three bodies in the Chinese financial industry. They reaffirmed the ban on financial institutions from offering cryptocurrency services.
China makes moves against cryptocurrency
This week China has been tough again. The country turned to cryptocurrency miners to eliminate the financial risks of speculation. Cryptographic mines and their impact on the environment represent another factor. The world’s second largest economy is in the midst of widespread regulatory repression of its fint technology sector.
The Chinese central bank held talks with several major banks and payment institutions on cryptocurrency trade speculation. In fact, the People’s Bank of China asked them to analyze the capital accounts of over-the-counter cryptocurrency exchanges and distributors and to cut out relevant payment links.
Finally, the central bank reiterated that no bank or bank can provide products and services to people engaged in cryptocurrency trading. The central bank added that it recently convened banks and payment institutions. Representatives of the Industrial and Commercial Bank of China and others to discuss issues related to cryptography with the central bank. The country’s central bank stated that virtual currency transaction activities alter the normal economic and financial order.
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