China continues to make waves in Asian cryptocurrency news. With each action by the Chinese government, ripples spread throughout cryptocurrencies, impacting the price and creating concern for investors around the world.
While China has long had a negative stance on Bitcoin and other cryptocurrencies, the latest in Asian cryptocurrency news from China is much more significant. The People’s Bank of China officially stated that any business activities conducted with the use of cryptocurrencies will be considered illegal financial activities. This stance was taken by the People’s Bank in response to an effort by the bank to protect the assets of those investing in cryptocurrencies.
It is not surprising that this Asian cryptocurrency news had an immediate and dramatic impact on the price of Bitcoin. After the announcement, the value of Bitcoin dropped in excess of $2000. In the past, China has been responsible for as much as 75% of the Bitcoin energy use around the globe, but that number had already dropped to about 45% in mid-2021.
Since 2019, China has banned the use of cryptocurrencies but has allowed citizens and entities to trade using the many different cryptocurrencies foreign exchanges. In May of 2021, the government pulled protection of online trading of Bitcoin, and in June, it ended the use of mining operations to make transactions.
This new announcement goes beyond attempting to stop the use of Bitcoin but actually making transactions of any form using cryptocurrencies illegal. This is not just for Chinese citizens but also for any exchanges or websites attempting to offer cryptocurrency services into the country.