China Strictly Bans Crypto Transactions And Mining, Bitcoin Cs Prices Fall Immediately

JAKARTA – The crypto market has crashed again due to the Chinese government's decision to ban crypto transactions and mining activities.

The People's Bank of China (PBOC) also stated that Bitcoin, Ethereum and stablecoins do not qualify as legal tender. The Chinese central bank also emphasized that cryptocurrencies cannot be used in the fiat market.

Launching Investing, on Friday Chinese regulators cracked down on cryptocurrencies by issuing a complete ban on Bitcoin cs transactions and mining. This action sent crypto prices plummeting, followed by a number of shares belonging to crypto and blockchain companies.

There are ten institutions including central banks, financial institutions, securities agencies and foreign exchange regulators that work together to stem cryptocurrency activity. All agreed to prohibit all activities related to cryptocurrencies.

According to Winston Ma, an assistant professor at NYU Law School, Friday's announcement was the most direct statement from the Chinese government involving government agencies that sent crypto prices plummeting.

"In the history of regulation of the crypto market in China, this is the most direct and most comprehensive regulatory framework involving the largest number of ministries," said Winston Ma.

The price of Bitcoin plunged 2 thousand dollars to 42,800 US dollars (equivalent to Rp.611,344,500) after the Chinese central bank issued a statement choking Bitcoin cs.

According to a CoinDesk report, China's crackdown on the cryptocurrency comes after they conducted a digital yuan trial in the second quarter of this year.

However, one of the Chinese journalists, Colin Wu, said that the statement from the PBOC was very detailed in prohibiting activities related to cryptocurrencies, including stablecoins such as Tether (USDT).

Because Tether has a fairly large market capitalization, USDT is also often used to fund crypto purchases as a decentralized financial guarantee.

The New York Times said that regulators called stablecoins a very systemic risky cryptocurrency. Some time ago, Gary Gensler as head of the US Securities and Exchange Commission (SEC) also mentioned stablecoins as equivalent to poker chips.

Apart from China, Turkey is also reportedly going against cryptocurrencies. President Erdogan mentioned that the government “has another war against cryptocurrencies.” This was conveyed by President Erdogan in a meeting with students in Turkey.