Cryptocurrency

Chinese Central Bank Reiterates: We Continue to Pressure Crypto Market

Published

1 year ago

May 21, 2022

Chinese Central Bank Reiterates,

The Chinese central bank will continue with the crackdown on the market for digital coins, the central bank said in a statement on Saturday. In recent times, the Chinese authorities have been increasingly strict against the trade in cryptocurrencies, which in previous cases led to fear among investors, resulting in price drops of crypto coins.

Beijing is concerned about the financial risks associated with cryptos. According to China, cryptocurrencies are often used for black trade, arms smuggling, gambling and drug trafficking.

The government has banned major banks and payment service providers from trading digital coins and services for transactions with cryptos. China says digital coins pose a threat to financial stability. (Chinese Central Bank Reiterates: We Continue to Pressure Crypto Market)

In addition, China is working to prevent the mining of digital coins such as bitcoins. The large energy consumption is at odds with the sustainable ambitions of China, which is an important player in the mining of cryptos.

China’s attack on the crypto market previously led to a sharp drop in the value of some cryptocurrencies, such as bitcoin. At the end of last month, the price of the best-known digital currency fell by 8 percent to 33,000 dollars (about 27,800 euros), when mining was partially banned in China.

Since then, the bitcoin has risen in value again to 41,600 dollars. The new warning from the Chinese central bank seems to have no effect.