If investors thought China’s stance on crypto previously in the week was simply posturing, they now have factor to believe it’s the real deal. As officials build on market reports from earlier in the week, it appears a China crackdown on crypto is a genuine possibility.
Source: Shutterstock Simply a couple of days back, China tossed down a ban on banks providing crypto-related services. People can hold their own cryptocurrencies, however finance companies can no longer conduct trading and settlement of digital currency. The news preceded a market-wide crypto crash, from which the market is still recovering. Bitcoin(CCC: BTC-USD)in specific visited over$20,000 on the news. Yesterday saw China reinforcing the ban, revealing their difficult position, further distressing financiers. Today however, talk of a China crackdown on crypto is triggering real pain. China Crackdown on Crypto: Digital Currency Hit Hard by the Prospect of
Guideline Today, the government of China isvoicing a desire to crackdown even harder, handling both mining and trading. Chinese Vice Premier Liu He is the loudest voice behind this desire. He states tighter policies need to come in order to protect the state’s own financial framework
. Mirroring the very same stance that the U.S. Treasury Department has taken on crypto, the Chinese federal government is saying that policy is needed to “badly punish unlawful securities activities, and severely penalize illegal monetary activities. “The news comes just a day after the Treasury’s
proposal over crypto went public. President Joe Biden is attempting to tighten up regulations on companies, exchanges, and custodians. To do this, Biden is proposing a requirement on companies to report big crypto transactions to the IRS. The news from China is already resulting in a slide in Bitcoin rates. BTC is down 10%in today’s trading session, undoing much of its current recovery. With China producing over half of the overall Bitcoins mined in 2020, a crackdown by the country would be detrimental to the digital currency’s production. On the date of publication, Brenden Rearick did not have (either straight or indirectly )any positions in the securities discussed in this short article.
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