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China tightens the grip around the use of cryptocurrencies

China tightens the grip around the use of cryptocurrencies

The concept of cryptocurrency is gaining more and more relevance in the mainstream global economic structure. Many countries are exploring new opportunities and options offered by the extensive features and applications of cryptocurrencies. However, China certainly tops the list for those countries who are rather critical on the use of crypto.

China had previously shown its disliking for the likes of Bitcoin and Ethereum. Therefore, China also tried to come up with its own version of crypto in the form of Digital Yuan. Even though, digital Yuan is in its trial stages, it has not been able to impress the experts and analysts. Nonetheless, the country has still objectified the use of cryptocurrencies in a any form or version.

Crackdowns and regulatory checks

China has made its intentions pretty clear about cryptocurrencies. Therefore, it has hurled different regulatory checks on the use of crypto within its territory. After every few months, China used to bring something up related to the crypto payments or transactions. However, this time it launched a ferocious attack on the market. This attack had a strong impact on the entire global crypto market.

Earlier, China announced to initiate a crackdown against Bitcoin mining facilities in the country. Several provinces, including Xinjiang and Sichuan suspended the power supply to mining facilities. Major reason behind this was the poor environmental implications of Bitcoin mining. As it was termed to be a waste of energy and resources by the authorities.

Recently, the People’s Bank of China (PBOC) has also announced to lift any support customers who wished to trade Bitcoin or other cryptocurrencies. The Bank primarily carried forward the policies formulated by the Government of China. The Bank also stated that from hereon no bank should provide any trading, clearing or investing option related to digital assets in the country. Moreover, the regulators were told to keep a check for any operational cryptocurrency exchange or OTC dealers to cut off any transactional link as soon as possible.

The Agricultural Bank of China has also announced to go in line with the anti-cryptocurrency policy of the Government of China. In the released statement, the Bank clearly mentioned that it would suspend ties and shutdown accounts of any user that indulges with cryptocurrencies in any way.

The PBOC is also conducting meetings with other major banks in the country to ensure they all abide by the same policy. These announcements have seriously laid an impact on the performance of Bitcoin in the market.

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