China bans crypto trading and mining | Newcastle Herald
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China’s most powerful regulators have stepped up the crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and putting pressure on crypto-related stocks and blockchain. Ten agencies – including the central bank, financial, financial and foreign exchange regulators – have pledged to work together to eliminate “illegal” cryptocurrency activity, the first time Beijing-based regulators have joined forces to ban explicitly any activity related to cryptocurrency. In May, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions and issued similar bans in 2013 and 2017. The repeated bans underscore the challenge of closing the loopholes and identify bitcoin-related transactions, although banks and payment companies say they are supporting the effort. Friday’s statement is the most detailed and expansive to date from the nation’s major regulators, underscoring the government’s commitment to stifle the Chinese crypto market. “In the history of regulating the crypto market in China, this is the most straightforward and comprehensive regulatory framework involving the largest number of government departments,” said Winston Ma, assistant professor at NYU Law. School. The move comes amid a global cryptocurrency crackdown as governments worry that highly volatile digital currencies exploited by the private sector could undermine their control of financial and monetary systems, increasing systemic risk, promote financial crime and harm investors. They also fear that “mining,” the energy-intensive computer process by which bitcoin and other tokens are created, could harm global environmental goals. Chinese government agencies have repeatedly expressed fears that cryptocurrency speculation could disrupt the country’s economic and financial order, one of its top priorities. Analysts say China also sees cryptocurrencies as a threat to its sovereign digital yuan, which is at an advanced pilot stage. “Beijing is so hostile to economic freedom that it cannot even allow its people to participate in what is arguably the most exciting financial innovation in decades,†senior Republican US Senator Pat Toomey tweeted. As US regulators closely monitor digital asset risks, they have said they also offer opportunities, including to promote financial inclusion. The People’s Bank of China (PBOC) has said cryptocurrencies should not be circulated and overseas exchanges are prohibited from providing services to investors based in China. “Trading in virtual currency derivatives are all illegal financial activities and are strictly prohibited,†the PBOC said on its website. It has also banned financial institutions, payment companies, and internet companies from facilitating cryptocurrency trading across the country. The government will “resolutely crack down on virtual currency speculation (…) to protect people’s property and maintain economic, financial and social order,” the PBOC said. China’s National Development and Reform Commission has said it will work to cut financial support and electricity supply for mining, which it says creates risks and hinders targets. emission neutrality. Bitcoin, the world’s largest cryptocurrency, fell more than 9% before reducing those losses. It was down 6.6% to US $ 41,937 on Saturday morning AEST. Smaller coins, which typically mimic bitcoin, have also fallen. The Chinese cabinet vowed in May to crack down on bitcoin mining and trading as it sought to mitigate financial risk, without going into detail, by dropping bitcoin by 30% in one day. Friday’s news dashed crypto enthusiasts’ hopes that the firm would not follow through on its threat. “This is the manifestation of the crackdown on crypto mining and trading… in May,†said Ma of NYU. Virtual currency mining was big business in China before May, accounting for more than half of the world’s crypto supply, but miners have moved overseas. “The losers in all of this are clearly the Chinese,†said Christopher Bendiksen, head of research at digital asset manager CoinShares. “They will now lose about $ 6 billion in annual mining revenues, all of which will go to other mining regions in the world,” he added, citing Kazakhstan, Russia and the United States. Associated Australian Press
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China’s most powerful regulators have stepped up the crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and putting pressure on crypto-related stocks and blockchain.
Ten agencies – including the central bank, financial, financial and foreign exchange regulators – have pledged to work together to eliminate “illegal” cryptocurrency activity, the first time Beijing-based regulators have joined forces to ban explicitly any activity related to cryptocurrency.
In May, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions and issued similar bans in 2013 and 2017.
The repeated bans highlight the challenge of closing the loopholes and identifying bitcoin-related transactions, although banks and payment companies say they are supporting the effort.
Friday’s statement is the most detailed and expansive to date from the nation’s major regulators, underscoring the government’s commitment to stifle the Chinese crypto market.
“In the history of regulating the crypto market in China, this is the most straightforward and comprehensive regulatory framework involving the largest number of government departments,” said Winston Ma, assistant professor at NYU Law. School.
The move comes amid a global cryptocurrency crackdown as governments worry that highly volatile digital currencies exploited by the private sector could undermine their control of financial and monetary systems, increasing systemic risk, promote financial crime and harm investors.
They also fear that “mining,” the energy-intensive computer process by which bitcoin and other tokens are created, could harm global environmental goals.
Chinese government agencies have repeatedly expressed fears that cryptocurrency speculation could disrupt the country’s economic and financial order, one of its top priorities.
Analysts say China also sees cryptocurrencies as a threat to its sovereign digital yuan, which is at an advanced pilot stage.
“Beijing is so hostile to economic freedom that it cannot even allow its people to participate in what is arguably the most exciting financial innovation in decades,†senior Republican US Senator Pat Toomey tweeted.
As US regulators closely monitor digital asset risks, they have said they also offer opportunities, including to promote financial inclusion.
The People’s Bank of China (PBOC) has said cryptocurrencies should not be circulated and overseas exchanges are prohibited from providing services to investors based in China.
“Trading in virtual currency derivatives are all illegal financial activities and are strictly prohibited,†the PBOC said on its website.
It has also banned financial institutions, payment companies, and internet companies from facilitating cryptocurrency trading across the country.
The government will “resolutely crack down on virtual currency speculation (…) to protect people’s property and maintain economic, financial and social order,” the PBOC said.
China’s National Development and Reform Commission has said it will work to cut financial support and electricity supply for mining, which it says creates risks and hinders targets. emission neutrality.
Bitcoin, the world’s largest cryptocurrency, fell more than 9% before reducing those losses.
It was down 6.6% to US $ 41,937 on Saturday morning AEST.
Smaller coins, which typically mimic bitcoin, have also fallen.
The Chinese cabinet vowed in May to crack down on bitcoin mining and trading as it sought to mitigate financial risk, without going into detail, by dropping bitcoin by 30% in one day.
Friday’s news dashed crypto enthusiasts’ hopes that the firm would not follow through on its threat.
“This is the manifestation of the crackdown on crypto mining and trading… in May,†said Ma of NYU.
Virtual currency mining was big business in China before May, accounting for more than half of the world’s crypto supply, but miners have moved overseas.
“The losers in all of this are clearly the Chinese,†said Christopher Bendiksen, head of research at digital asset manager CoinShares.
“They will now lose about $ 6 billion in annual mining revenues, all of which will go to other mining regions in the world,” he added, citing Kazakhstan, Russia and the United States.
Associated Australian Press
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