Bitcoin falls as China deems all cryptocurrency transactions illegal

(financialpost.com)

China intensified a crackdown on cryptocurrency trading on Friday, vowing to root out “illegal” activity and banning crypto mining nationwide, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.

Ten Chinese government agencies, including the central bank as well as banking, securities and foreign exchange regulators, said in a joint statement they would work closely to maintain a “high-pressure” clampdown on trading of cryptocurrencies.

This is interesting. If China is clamping down on crypto, then that’ll do a lot towards carbon emissions.

The PBOC also barred financial institutions, payment companies and internet firms from facilitating cryptocurrency trading. The moves come after China’s State Council, or cabinet, vowed in May to crack down on bitcoin mining and trading as part of efforts to fend off financial risk, sparking a major sell-off of cryptocurrencies.

Ah … that explains a few things.

Virtual currency mining had been a big business in China before a crackdown that started earlier this year, accounting for more than half of the world’s crypto supply.

The NDRC said it will work closely with other government agencies to make sure financial support and electricity supply will be cut off for mining. The national planning body also urged local governments to come up with a specific timetable and road map to eradicate such activities.

This could result in quite a “value” drop in crypto. That said, it doesn’t really affect NFTs, which I’m thinking about for posts …