The cryptocurrency markets have taken a substantial hit during the last 24 hours. As Toshi Times reported yesterday, China is now taking action against cryptocurrency exchanges in the country. Moreover, this is raising concerns that China will now aim to stomp out local cryptocurrency exchanges.
China promises to “dispose of” cryptocurrency exchanges
Specifically, this all began as the People’s Bank of China sent out a statement on November 21st. In the statement, the authority said that it will take action against some entities that are trading cryptocurrencies.
Furthermore, the People’s Bank of China went on to state that it would “dispose of” cryptocurrency exchanges in the coming weeks and months. Additionally, the agency also said that this action comes as a response to the substantial increase in cryptocurrency trading volume.
This recent surge in cryptocurrency trading in China supposedly comes as a result of the government’s changing sentiment. During the last few weeks, the Chinese government has become more friendly towards cryptocurrencies.
In fact, a state-run publication recently went so far as to label Bitcoin “blockchain’s first success”. In combination with the Chinese governments recent statements regarding blockchain and how the country should boost adoption of it, it would appear that Chinese individuals have also begun to trade more cryptocurrencies recently.
Bitcoin falls to nearly $7,000
Nevertheless, it now appears that this may be coming to a swift end. The People’s Bank of China was clear in its statement that it would seek to counteract the national trading ban on cryptocurrencies.
As such, the People’s Bank has said that it will seek to “dispose of” any such illegal trading activity it discovers under its jurisdiction. “Once it is discovered, it will be disposed of immediately, and it will be prevented from happening early,” a translation of the agency’s statement reads.
Following this, the cryptocurrency markets have taken a sharp dive. Bitcoin is currently trading close to the $7,000 line. At the time of writing, Bitcoin is holding more or less steady at a price of $7,157.
This is a substantial downturn over just the last 24 hours, and Bitcoin’s fall has taken the wider cryptocurrency market down with it in its fall. Yesterday, Toshi Times reported that Binance’s Shanghai offices had been raided, and speculated that this was the start of a nationwide crackdown on cryptocurrency exchanges.
It would now appear that this is indeed the case. However, it remains to see how the long-term effects of this will go on to impact the cryptocurrency industry and Chinese cryptocurrency exchanges.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.