China's Central Bank's Decision Causes Crypto Market Crash, Bitcoin Prices Cs Free Falls

Causes of the crypto market crash (CryptoNewsFlash)

JAKARTA – The crypto market crashed again after the Central Bank of China, the People's Bank of China (PBoC) ordered to close a number of companies that provide crypto trading services on Tuesday, July 20. This decision caused the price of the cryptocurrency to plummet in recent days.

China has several times given negative sentiments to the crypto market. The PBoC recently banned institutions that provide services related to cryptocurrencies, including crypto trading.

However, this is nothing new for China to do with the crypto market. In 2013, China ordered third-party payment providers to stop using Bitcoin.

Then in 2017, Chinese financial authorities stopped trading crypto. Regulators also pledged to continue attacking crypto trading in 2019, according to a report from CNBC International.

In 2021, before the crypto market crashed, the Chinese government had banned crypto-related payments last May. It did not stop there, in June, the Chinese government carried out mass arrests of its citizens suspected of committing crimes from using cryptocurrencies.

In the same month, the Chinese government further tightened its regulations to contain cryptocurrencies. They are pressuring banks and payment companies to stop providing crypto services. They also blocked accounts discussing crypto on Weibo social media.

Continuing in July, most Bitcoin miners were expelled from China. This incident made the mining world gloomy. It seems that the Chinese government is trying to do everything in its power to undermine the development of cryptocurrencies. The reason is, they are currently testing Yuan Digital and will soon be implemented in the near future. Cryptocurrencies are a stumbling block to their goals.

"The Chinese government is doing everything they can to ensure that bitcoin and other cryptocurrencies disappear from China's financial system and economy," said Marathon Digital Holdings CEO and Bitcoin Mining Board member Fred Thiel.

In addition, rumors are circulating that China's crackdown on crypto is part of the agenda for the 100th anniversary of the Chinese Communist Party.

Not only that, Changpeng Zhao's crypto trading platform, Binance is also being heavily attacked by a number of major countries in the world. On the other hand, crypto investment firm Greyscale is rumored to have released thousands of its Bitcoins to the market. It is not yet known when the crypto market will recover.