Bitcoin price drops nearly $3,000 as China imposes a ban on all cryptocurrency-related transactions
According to the September 24 statement, the People’s Bank of China (PBoC) has issued a new document that lays out how it is toughening measures to keep cracking down on Bitcoin price and cryptocurrency trading activities.
China has intensified its crackdown on Bitcoin price
All services that allow the exchange of fiat and crypto assets or between crypto assets are now considered illegal activities. That said, the PBoC has officially imposed a ban on all crypto-related transactions. Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and other major cryptocurrencies are banned from the market.
It seems that they will target the OTC services that are still available on Huobi, OKEx, and Binance, which allow Chinese users to exchange their fiat yuan into crypto assets to participate in crypto trading activities.
Furthermore, the notice clearly states that providing crypto derivatives trading services is also an illegal business in China, even for overseas exchanges that help Chinese citizens Countries can access this service. However, it remains to be seen if Huobi, OKEx, and Binance will discontinue their OTC services.
BTC/USD 4-hour chart | Source: TradingView
After this news, Bitcoin price immediately fell sharply, from a high of $45,000 just now, BTC is currently trading at $42,652. Of course, the altcoin market is also affected. Solana (SOL) and Dogecoin (DOGE) have been down 8% in the past 24 hours.
Things get worse when even individuals who live in China but work for overseas crypto exchanges to provide crypto trading in China can be subject to legal prosecution. Fortunately, China does not ban cryptocurrency ownership. However, we understand that prohibiting this form of asset storage is not easy.
“Overseas virtual currency exchanges providing services to Chinese residents through the Internet are also illegal financial activities,” The PBoC stated.
They didn’t give a fine but only said that illegal cryptocurrency-related activities would be severely punished. Many people think they should not be too scared because this may be just a solution to help China prevent capital outflow.
Francine Lacqua, Editor-at-large, Anchor at BloombergTV, also tweeted as below:
Source: Francine Lacqua
Although the crypto community considers “FUD China” mundane and trivial, the market is not immune to the new crackdown. But the truth is that China still has a significant influence on the crypto market.
Read more:
- Bitcoin Price At One Point Rose To Close To $45,000, Pushing The Market Cap Past $844 Billion
- Twitter Confirmed Rumors That It Would Be Launching A Bitcoin Tipping Function