Why China blocked Cryptocurrency ( Bitcoin) Trading and its Impact on Bitcoin
1: China has once again blocked cryptocurrency trading.
2: China’s new digital currency is ready to for test.
3: China concerns about the illegalized and un-regulation of cryptocurrency.
China one of the big giant countries has blocked once again cryptocurrency trading, mining and other cryptos related transaction. This time top agencies of China have joined the force to ban cryptocurrency transactions from all over the country. All financial institutions and Beijing base regulators have joined the China government in forcefully banned cryptocurrency.
Earlier Actions:
In 2013 and 2017, China has taken the step to ban this unregulated currency, but they have not succeeded. This time Beijing financial regulators are helping the government to ban this currency trading. Once again China has taken a step to stop cryptocurrency trading.
Why ban it
As per government remarks, the aim behind the ban of cryptocurrency is to support the government currency Yuan. Due to this privately managed currency, the government was losing control of the forex trading market, which leads to increase systematic risk of financial markets. Cryptocurrency hurts the investor and promotes crime.
AS per the famous news agency, the New York Times, China has banned cryptocurrency because they want to launch its digital currency, the electronic Chines Yuan. China government has two main agendas, to promote its digital currency and secondly, to make its citizen away from privately financial service providers AliPay and WeChat. China Government will collect the financial transaction data of its citizens through this government-owned regulated digital currency.
Impact Bitcoin Trading
People bank of China has mentioned on its website about its illegality. Bitcoin has dropped drastically due to this news. As per Bloomberg news source, the Bitcoin market react immediately to this news and dropped 8% and trade at $41,000 as of 9:00 O clock the Morning.
Now it’s time to see, how investors and other players will react on this new China policy. Investors are very uncertain about this situation.
Sources:
- https://www.reuters.com/world/china/china-central-bank-vows-crackdown-cryptocurrency-trading-2021-09-24/
- https://www.bloomberg.com/news/articles/2021-09-24/china-deems-all-crypto-related-transactions-illegal-in-crackdown
- https://www.nytimes.com/2021/09/24/business/china-cryptocurrency-bitcoin.html
- https://www.seattletimes.com/business/china-declares-all-cryptocurrency-transactions-illegal/