In the second half of the year, China continued to put high pressure on cryptocurrency trading
In a recent statement, the People’s Bank of China (PBoC) said that it will continue to impose heavy regulatory pressure on the cryptocurrency market. The statement comes months after the country decided to restrict mining and trading.
China will keep regulatory pressure on cryptocurrency
According to the announcement, PBoC will supervise financial platforms to comply with regulations. Besides, it also takes steps to prevent major financial risks and lower the number of high-risk financial institutions in key provinces. It added that it will push for the creation of a financial stability law proposed by central bank deputy governor Liu Guiping in March.
China has launched its most intense crackdown on cryptocurrency trading and mining since 2017 amid a surge in the price of Bitcoin and other cryptocurrencies. The top cryptocurrency hit an all-time high above $63,000 in April before it plummeted due to the market crash.
China is phasing out Bitcoin miners as authorities fear that the new asset class could be used in fraudulent activities such as money laundering. The move is also partly due to climate concerns as rising coal demand in China and increasing electricity consumption is being attributed to crypto farms. China is clamping down on the cryptocurrency market as it pushes for its digital yuan, the e-CNY.
“China’s government is doing everything they can to ensure that bitcoin and other cryptocurrencies disappear from the Chinese financial systems and economy,” said Fred Thiel, CEO of Marathon Digital Holdings and a member of the Bitcoin Mining Council.
As early as next year, participants of the 2022 Beijing Winter Olympics may be able to pay for goods and services using the digital yuan as e-CNY trials expand to locations related to the sports event.
In short, the meeting emphasized that the crackdown on crypto in the second half of the year is to maintain rather than strengthen, which may imply that there will be no big new policies, but the continuation of current policies.
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