China crackdown on crypto wipes $300 billion off market value

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spent The renewed Chinese campaign The cryptocurrency has been targeting nearly $300 billion in value from the total cryptocurrency market cap since Friday, when a major bitcoin mining hub ordered miners to close their operations.

Bitcoin is down about 2% at $32,330.21, according to CoinDesk data. Other cryptocurrencies including Ethereum and XRP have also fallen sharply.

This comes, after China intensified its efforts to rein in the cryptocurrency industry in the country, during the past few days, according to “CNBC”, and seen by “Al Arabiya.net”.

Mining ban and central directives

Authorities in China’s Sichuan province on Friday ordered cryptocurrency mining companies to close their operations, one of the largest bitcoin mining centers in China.

Several bitcoin mines in the southwestern Chinese province have also been closed as of Sunday, according to the state-backed Global Times.

The move in Sichuan comes after other mining-intensive provinces in China, including Inner Mongolia, were closed.

Then the People’s Bank of China said on Monday it had spoken to Alipay, the payments service operated by Alibaba’s Antgroup, and some major financial institutions. The central bank said it urged them not to provide services related to cryptocurrency activities, including account opening or clearing and settlement.

China banned domestic cryptocurrency exchanges in 2017, forcing it to move abroad. This did not stop Chinese traders from buying and selling cryptocurrencies, although it did add a layer of complexity to their trading. As Chinese traders will have to transfer the Chinese yuan to a platform to buy cryptocurrencies. This will be done via a payment service such as Alipay or a bank account. So the People’s Bank of China’s latest alert to financial institutions may look to stamp this out further.

Since Friday, when the Sichuan authorities notified miners to close their operations, the price of Bitcoin has fallen by about 16%. As the central bank notice added more pressure.





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