China bans bitcoin
BEIJING: China has banned all cryptocurrency transactions and vowed to stop illegal crypto mining, delivering the toughest blow yet to the trillion-dollar industry. It added that cryptocurrencies, including Bitcoin and Tether, are not fiat currency and cannot be circulated. China has long expressed displeasure with crypto because of its ties to fraud and money laundering, and excessive energy usage. While there are probably still Chinese onshore speculators, activity has already shifted out of the country over the years amid increasingly stringent regulations, says Clara Medalie, the research lead at the data provider Kaiko. Bitcoin and other virtual currencies are back on the defensive after a rebound from July lows. In the United States, regulators are also now issuing strong warnings to the industry that it is in danger of echoing the toxic culture before the financial crisis.
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Content:
- China’s latest crypto crackdown is its toughest yet
- What’s the cryptocurrency clampdown in China about?
- Is Bitcoin future safe? What if China completely bans crypto mining?
- Bitcoin mining has totally recovered from Chinese ban
- China bans cryptocurrency transactions
- Russia proposes ban on use and mining of cryptocurrencies
- China bans crypto transactions
- U.S. Won't Follow China in Banning Crypto, SEC Chief Says
- China's crypto ban aims to eliminate competition with digital yuan: Expert
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China’s latest crypto crackdown is its toughest yet
Inside a Bitcoin mining factory Photo: AFP Many Bitcoin mines in Southwest China's Sichuan Province - one of China's largest cryptocurrency mining bases - were closed as of Sunday, after local authorities ordered a halt to mining in the region on Friday amid an intensified nationwide crackdown against cryptocurrency mining. The ban also means that more than 90 percent of China's Bitcoin mining capacity is estimated to be shut down, at least for the short term, as regulators in other key mining hubs in China's north and southwest regions have taken similar harsh steps.
Some industry players had hoped that regulators in Sichuan, where hydropower is abundant, could take a softer approach. But the latest ban underscores Chinese regulators' determination to curb speculative crypto trading to control financial risks, despite certain benefits to local economies, observers said. The Sichuan Provincial Development and Reform Commission and the Sichuan Energy Bureau issued a joint notice on Friday, ordering local electricity companies to "screen, clean up and terminate" mining operations by Sunday.
The notice also ordered local electricity companies to immediately stop supplying power to crypto mining projects they have detected, and conduct self-inspection and rectification, and report their results by Friday.
Also, it banned local authorities from approving new mining projects. Chinese companies-backed Bitcoin mining pools, such as Huobi Pool, Binance and AntPool, have experienced a 20 percent to 40 percent plunge in their real-time hash rates within the past 24 hours, according to media reports. As a result, Chinese miners must form alliances to migrate overseas, to places such as North America and Russia," Shentu noted.
He added that the price of mining machines could take a dive in the short term, as many crypto miners would dump the processing equipment, but market willingness to digest the oversupply would remain lukewarm. That would also "hammer" upstream supplies. Wang Peng, an assistant professor at the Gaoling School of Artificial Intelligence at the Renmin University of China, told the Global Times on Sunday that the Chinese authorities' move is in line with global financial regulators' tightened scrutiny of digital currency trading, to prevent systemic financial risks and illegal activities such as money laundering.
In May, senior Chinese officials said that it is necessary to crack down on Bitcoin mining and trading, and resolutely prevent the transmission of individual risks to the wider society.
Major Bitcoin mining hub in China issues harsh crackdown measures on cryptocurrency activities. Local government mulls crackdown on Bitcoin mining.
What’s the cryptocurrency clampdown in China about?
In a recent interview on the Wharton Business Daily radio show on SiriusXM, Werbach pointed to numerous other factors that shape cryptocurrency prices. The evolution of cryptocurrencies will be shaped by choices countries make on how to use them e. They are not about to become globally accepted as yet, even as some countries have embraced them; recently, El Salvador adopted Bitcoin as its currency and Switzerland cleared the way for more trading of Bitcoin and other digital assets in the country. Kevin Werbach: It was not surprising at all. China has been strictly regulating and limiting cryptocurrency activity for a number of years. In , it banned exchanges operating in China.
Is Bitcoin future safe? What if China completely bans crypto mining?
France 24 is not responsible for the content of external websites. The comments sent the unit diving more than 10 percent and dealt it another blow soon after being battered by comments from tycoon Elon Musk and his Tesla car company. Trading in cryptocurrencies has been banned in China since to prevent money laundering as leaders try to stop people from shifting cash overseas. The country had been home to around 90 percent of the global trade in the sector. And in a statement, three state-backed industry associations said "cryptocurrency prices have skyrocketed and plummeted, and cryptocurrency trading speculation activities have rebounded". The price fluctuations "seriously violate people's asset safety and disrupt normal economic and financial order", said the statement, which was posted to social media by the People's Bank of China. The notice warned consumers against wild speculation, adding that the "losses caused by investment transactions are borne by the consumers themselves", since Chinese law offers no protection to them. It reiterated that providing cryptocurrency services to customers and crypto-based financial products was illegal for Chinese financial institutions and payment providers. Linghao Bao, analyst at Trivium China, said despite the ban Chinese investors can still find ways to buy cryptocurrencies through illegal vendors. Adam Reynolds, of Saxo Markets, added that avoiding use of cryptocurrency, which can be transferred out of the country, is "essential to maintaining capital controls" in China.
Bitcoin mining has totally recovered from Chinese ban
Subscribe to our weekly newsletter to get it delivered straight to your inbox! Cryptocurrency investors woke up to bad news on September 24th: China announced a ban on all crypto currency transactions and crypto mining. It's not the first time China has tried to control currencies designed to be beyond the reach of government regulation. At the end of , regulators directed that Chinese banks were not to accept or trade in Bitcoin.
China bans cryptocurrency transactions
Rounds of cryptocurrency boom-and-bust recently have raised cautions from China's regulatory authorities, who have banned financial and payment institutions from providing services related to the virtual currency transactions and warned investors against the speculative trading. The three associations are the National Internet Finance Association of China — an association of Chinese internet firms providing financial services, the China Banking Association on behalf of the country's banks, and the Payment and Clearing Association of China. According to the statement, financial institution members, payment institutions, and other agencies shall not use virtual currency to price products or services. Also, internet platform enterprises shall not provide services for virtual currency-related business activities. It is also not allowed to underwrite insurance businesses related to virtual currencies or bring virtual currencies into insurance liability coverage.
Russia proposes ban on use and mining of cryptocurrencies
The move is the latest in a series of measures aimed at curbing the use of cryptocurrencies that goes back years. Trading in cryptocurrencies has been banned in China since , but it has continued online through foreign exchanges. In May , financial institutions and payment companies were prohibited from providing services related to cryptocurrencies , bolstering similar bans issued in and On one level, it is unsurprising that an authoritarian government would feel uncomfortable with any decentralized, non-sovereign currency that bakes in both encryption and—at least superficially—a promise of anonymity. Cryptocurrencies, of which Bitcoin is the best-known example and has the highest market share, are non-fiat-based currencies. They are not officially categorized as money, because they are typically not backed by states, nor are they linked to gold, silver or some other convertible peg of value. While cryptocurrencies are starting to become more widely accepted as a form of payment—even by at least one taxi-cab operator in Oxford, where I live—their acceptance is still far from widespread.
China bans crypto transactions
Sunny Leone took the lead among Indian actors to secure her digital assets when she broke the news about her association with NFT, two months back. This made her the first Indian actress to mint NFTs. Choose your reason below and click on the Report button. This will alert our moderators to take action.
U.S. Won't Follow China in Banning Crypto, SEC Chief Says
RELATED VIDEO: China Bans Bitcoin (For The 444th Time)As China imposed a blanket ban on cryptocurrencies, investors around the world turned panicky. Do investors in India have any reason to worry? Let us find out. As Chinese authorities banned trading in cryptocurrencies, there was an immediate palpable fallout with global digital currencies declining everywhere including in India. The People's Bank of China PBOC announced recently that cryptocurrencies cannot circulate in China and also barred overseas exchanges from giving their services to investors. It also restricted financial institutions, internet firms and payment companies from facilitating trading of digital currencies across the nation.
China's crypto ban aims to eliminate competition with digital yuan: Expert
Further, all cryptocurrency transactions in China are considered illegal, including offshore exchanges to provide services to Chinese citizens. The authorities stated that China-based employees of offshore crypto exchanges or any companies providing services to them will be investigated and prosecuted. On the same day, the National Development and Reform Commission NDRC and 10 other authorities issued another circular the NDRC circular to local governments on how to wind down cryptocurrency mining activities in their areas. China joins a growing list of countries where cryptocurrencies are banned or restricted. Egypt, Indonesia, and Nepal are among where these restrictions exist. This ban is part of a national crackdown on the currency form. The Chinese government sees it as a volatile investment and have concerns about it being used to launder money.
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The move follows earlier Chinese Communist Party messaging that banned cryptocurrency mining and warned financial institutions not to participate in such transactions. Xi may not simply be motivated by ideology here—as migration to cities has slowed and birthrates have fallen, the country has become riddled with unfinished or unoccupied housing. Local governments have slowed land sales substantially, down 90 percent year over year.
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