The Middle Kingdom recites crypto (again).
China’s central bank has declared all cryptocurrency-backed transactions illegal within its borders, arguing the ban on the digital currency amid national concerns about the country’s borders and “the safety of people’s assets,” according to initial report from Technical crisis.
The world’s most populous nation has also banned foreign exchanges from providing services to consumers within their borders.
China says crypto trading is a threat to “social order”
Ten China-based agencies have pledged in a joint statement to co-operate in the pursuit of “high pressure” against cryptocurrency trading in the country, according to the report. The People’s Bank of China has also ordered financial, Internet and payment companies to stop supporting or authorizing cryptocurrency trading on its platforms, and says digital currencies such as Tether and Bitcoin cannot be marketed because they are not fiat. According to the bank, digital currencies have violated “economic and financial order” and crushed the wheels of “money laundering, illegal fundraising, fraud, pyramid schemes and other illegal and criminal activities.”
Anyone who violates this new rule, the Central Bank of China has warned, will face an investigation into “criminal liability under the law.” In addition, the Chinese government will “decisively curb speculation on virtual currency and related financial activities and misconduct in order to protect people’s property and maintain economic, financial and social order,” the bank added in a statement. This drastic move has already brought panic to some cryptocurrency traders, with bitcoin and several other currencies seeing a sharp drop in prices. Bitcoin fell at least 5.5% on Friday, down 4.62% at the time of writing.
The United States could see a massive influx of bitcoin mining operations
China has served as home to some of the world’s largest cryptocurrency mining services, but many of these businesses will now be targeted by new policies. And this is not the first time China has launched a major campaign against cryptocurrency and bitcoin activities. But this may be the first time that many or even all government agencies have pooled their resources in a joint effort to halt all digital cryptocurrency trading. And when it comes to NFT, it’s hard to completely deny empathy for China’s disappointments. But in the US, NFT and in particular bitcoin mining. In June, amid high prices and cryptocurrency exchanges and the recently accepted and supported by the blockchain market of NFT, bitcoin mining operations jumped significantly. This had become such a powerful trend that significant bitcoins mining operations buy out former industrial enterprises and factories to serve as a cheap space for crypto mining operations.
“We’ve already built enough machines to meet the growing demand for cryptocurrencies,” said Foundry CEO Mike Collier in a Restrained report. Foundry offers consulting and funding services for crypto miners who have enough devices to dig up all the crypto they want, but “have nowhere to turn them on,” Colyer said. A company called Greenidge Generation has launched a bitcoin mining operation at a non-existent coal-fired power plant near Lake Seneca in New York State. However, despite Greenridge’s fierce denial, some residents later complained that significant mining activities could harm the environment. Although we can assume that cryptocurrency mining will also be banned under China and its bank’s new rule, it would be difficult to say that the Middle Kingdom is fighting cryptocurrencies. from environmental issues. Time will tell how the crypto market will eventually react and perhaps cancel the country’s latest anti-crypto campaign.