Bitcoin hit hard after China’s restrictions on crypto transactions
China’s financial regulators issued a press release on Tuesday imposing a warning on all banks and financial firms against the use of cryptocurrency as a mode of payment. There was chaos all over the market yesterday as the news sunk in and created a market-wide commotion.
The joint statement from the three associations was simply a reminder to not provide any crypto services to their clients. As released, “Financial institutions, payment institutions and other member units must earnestly strengthen their social responsibilities. They must not use virtual currency to price products and services, underwrite insurance businesses related to virtual currencies or include virtual currencies in the scope of insurance liability, and must not directly or indirectly provide customers with other services.”
The financial regulators cited that this effort is for the sake of their people. To add to that, they feel that the market is too risky now plus with the high volatility, it’s getting more attention than before. Speculators stated that this warning might be the government’s plan to drive people to the digital yuan.
This week, the crypto market particularly Bitcoin has come under pressure following a series of controversies from Elon Musk’s tweets about Bitcoin’s mining process versus environment-related concerns, followed by China’s warning to all financial firms against the use of any services related to cryptocurrency.
The world’s largest digital currency bitcoin BTC has hit rock bottom at $30,000, though the price had risen back to $39,650.80 as of this writing.
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