China Bans Crypto Trading & Mining

China’s most powerful regulators on Friday intensified the country’s crackdown on cryptocurrency with a blanket ban on all crypto transactions and crypto mining, hitting bitcoin and other major coins and pressuring crypto and block-chain-related stocks.

Ten agencies, including the central bank as well as banking, securities and foreign exchange regulators, vowed to work together to root out “illegal” cryptocurrency activity, the first time the Beijing-based agencies have joined forces to explicitly ban all cryptocurrency-related activity.

“China has been known to go to extremes with either very assertive statements and prosecutions to complete radio silence,” said George Zarya, CEO of Bequant crypto exchange in London.

“This time the point was made very clear that China will not support cryptocurrency market development as it goes against its policies of tightening up control over capital flow and big tech,” he said.

The People’s Bank of China (PBOC) said cryptocurrencies must not circulate as traditional currencies and that overseas exchanges are barred from providing services to mainland investors via the Internet, cutting the likes of Coin base and Binance off from the world’s second-largest economy.

The PBOC also barred financial institutions, payment companies and Internet firms from facilitating cryptocurrency trading nationally.

The Chinese government will “resolutely clamp down on virtual currency speculation, and related financial activities and misbehavior in order to safeguard people’s properties and maintain economic, financial and social order”, the PBOC said in a statement.

Bitcoin, the world’s largest cryptocurrency, dropped over 6% to $42,216 on the news, having earlier been down about 1%.
Smaller coins, which typically rise and fall in tandem with bitcoin, also tumbled.

Ether fell 10% while XRP dropped a similar amount.

The move has dashed hopes among many in the industry that the May crackdown would be short-lived and the pressure would ease after the 100th anniversary of the Chinese Communist Party in July.

“There’s a degree of panic in the air,” said Joseph Edwards, head of research at cryptocurrency broker Enigma Securities in London. S-ET

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