China’s Continual Crackdown On Crypto Transaction

The recent crackdown of crypto mining and transaction in China is inevitable. On June 21, 2021, the People’s Bank of China (PBOC) issued a notice that it has talked with many financial services firms that they must not provide trading, clearing, and settlement for crypto transactions. 

The PBOC stressed that “virtual currency trading activities disrupt the normal economic and financial order, breed the risks of illegal cross-border transfer of assets, money laundering and other illegal and criminal activities, and seriously infringe the people’s property safety.”

Banks and payment institutions must strictly implement the “Notice on Preventing Bitcoin Risks” and “Announcement on Preventing Token Issuance Financing Risks” and other regulatory requirements, perform their customer identification obligations, and must not provide account opening, registration, and transactions for related activities, as well as clearing, settlement and other products or services.

After the announcement, the price of Bitcoin (BTC)  plummetted to a low of $31,269 per unit and then dropped further the next day to $28,820. By now it is hovering around $33,500. It seems that Bitcoin price recovers a bit now.