The shaking in the crypto world continues after China announced that it is halting Bitcoin mining and trading activities to avoid financial risks. According to last minute reports, China will not back down from this prohibition activity that it concocted to avoid financial risks.
China has announced that it will halt Bitcoin mining and trading activities as part of its efforts to prevent financial risks.
The decision in question was taken by the Chinese State Council’s Financial Stability and Development Committee.
Deputy Prime Minister Liu He, who chaired the committee, said in a statement that Beijing will also try to maintain the stability of the stock, bond and forex markets by preventing illegal activities in the securities market.
Immediately after this decision, the weekly loss in another crypto currency Ethereum increased to 15 percent.
China recently announced on May 18 that it banned financial institutions and payment systems from providing services over cryptocurrencies. Immediately after this decision, while the depreciation of Bitcoin exceeded 12 percent per day on Wednesday, it was seen below the $ 40,000 level for the first time since February.
In a joint written statement made by the National Internet Finance Association, Banking Association, Payment and Clearing Platform in China, “While cryptocurrencies have been rising and falling very sharply recently, speculative crypto transactions have increased. This violates people’s asset security and seriously disrupts the economic and financial order. ” statements were included.
Does China accept cryptocurrency as legal?
China does not accept cryptocurrency as legitimate money, and its banking system does not accept cryptocurrency or associated services. In 2013, the government announced that by defining Bitcoin as a virtual commodity, individuals are allowed to freely participate in online commerce. However, financial regulators have banned banks and payment companies from providing Bitcoin-related services.
Since September 2017, it has also banned the ICO (Initial Coin Offerings), ie digital money supply, in order to protect investors and reduce financial risks. ICO rules also banned crypto trading platforms from converting legal money into cryptocurrency or from converting crypto into legal money.
Restrictions have caused many trading platforms to close and move out of the country. As the ICO rules prevented financial institutions and payment companies from providing account opening, registration, trading, clearing and payment services, 88 virtual currency trading platforms and 85 ICO platforms were withdrawn from the market in July 2018, according to official data.