China is taking practical measures to ban cryptocurrency in the country. On Tuesday, the People’s Bank of China and financial regulators from Beijing punished a company for allegedly providing crypto-related services.
Bitcoin is still in hot waters over the ban of currency in China and some other factors (Climate Change) in the general discourse around crypto. Bitcoin was trading at $35,094 on Monday with a rise of 3.7%. However, the currency fell to $34,194 after the news of China taking action against the company meddling in the crypto business.
Beijing’s Financial Regulators and People’s Bank of China ordered the company to cancel its business registration. This is the practical step from the Chinese government to enforce the crypto ban announced by the People’s Bank of China a few months ago. The whole crypto market saw a sharp decline in value following the country’s decision to stop all sorts of crypto-related activities.
The statement issued by financial regulators said that the country prohibits financial and payment institutions from directly or indirectly involving in the provision of crypto services. These services can range from crypto transaction verification and settlement of payment using crypto to the marketing of virtual currency, promotion, and display of crypto.
People’s Bank of China Envying Crypto
China has recently increased its focus on regulating the crypto industry. The recent move is seen by many as the country flexing its power to decide the fate of the crypto world. Moreover, Central Bank sees decentralized digital currency as a threat to the digital Yuan.
The bitcoin miners in China are also under scrutiny. Many miners have either shut down their activities or have moved out of the country. The metrics of display a sharp decrease in the mining activity.
Bitcoin had its yearly high at $65K. However, the currency has been stuck between $30,000 to $40,000 for the past few weeks.
Originally published at https://autotradingstrategies.com.