Again, China's Central Bank Makes Crypto Markets Crash

China makes crypto price crash (Moneyandmarkets)

JAKARTA – China's central bank, the People's Bank of China (PBOC) has instructed financial institutions to stop supporting cryptocurrency transactions. The negative sentiment from the PBOC has caused the crypto market to crash.

As reported by CoinDesk, banks in China are prohibited from facilitating cryptocurrency trading, clearing, and transactions.

The decision immediately sent crypto prices plummeting. China's resistance to crypto is getting tougher. Previously, they also blocked all accounts on Weibo social media that discussed cryptocurrencies.

Based on data from CoinMarketCap, the price of Bitcoin (BTC) has decreased by 21.09 percent, while Ethereum (ETH) has fallen 24.39 percent in the past week. When this news was written, the price of BTC touched the level of Rp464 million. Meanwhile, ETH was at a price of Rp 27 million on Monday, June 21.

The negative sentiment from the Chinese government emerged after the PBOC consulted with a number of banks such as Industrial and Commercial Bank of China, Construction, Agricultural Bank of China, Industrial Bank, Postal Saving Bank, and Alipay Network Technology regarding cryptocurrencies.

The PBOC views cryptocurrency transactions as a major problem when it comes to money laundering. They also called crypto money a threat to the economy and state finances.

Therefore, financial institutions and banks agreed on the steps taken by the PBOC. Chinese banks also plan to ban all crypto-related businesses.

Previously, the Chinese government also strictly prohibited crypto mining in Sichuan, which is a Bitcoin mining area. In fact, mining is considered environmentally friendly because it uses the largest hydroelectric power plant in the world.