Bitcoin, Dogecoin, Ethereum – all plummeted by more than 10% due to China

Against the backdrop of a new tightening of crypto trading in China, the Dogecoin meme-cryptocurrency exchange rate on Monday fell by more than 30% to 17.6 cents — in May it reached a space of 74 cents. Ethereum fell by 15%, and bitcoin lost 11%, falling to a two-week low of $31.5 thousand. The cryptocurrency market, according to Coinbase, sank by 12%.

In May, China banned local banks from mining and trading crypto, provoking a drop in the exchange rates of cryptocurrencies. Another one on Monday followed a new hint of increased restrictions in the country. The Chinese central bank gathered representatives of several key financial institutions and the payment service Alipay and reminded them of the inadmissibility of providing any services related to the crypt. In addition, they were called upon to identify and block transfers to the accounts of cryptocurrency exchanges and OTC platforms.

A few days earlier, the regional authorities imposed a ban on mining in Sichuan Province, as a result of which 26 crypto mining companies were closed. As CNBC notes, 90% of China’s mining capacity has now been suspended. Last year, China accounted for 65% of global bitcoin production, according to Reuters, and Sichuan was the second-largest miner in the country.

According to the People’s Bank of China, cryptocurrencies and speculative activities undermine the economic and financial system. The regulator also says that they create the ground for illegal movement of funds across the border and illegal activity, such as money laundering. Meanwhile, China is in full swing developing and testing its own stable and controlled — virtual currency: the digital yuan.

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Author: Steve Cowan
Graduated From Princeton University. He has been at the Free Press since October 2014. Previously worked as a regional entertainment editor.
Function: Chief-Editor
Steve Cowan

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