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Cryptocurrency: Expert Discusses Bitcoin’s Success

On Monday, Beijing’s central bank, the People’s Bank of China (PBOC), said it had called on several major banks and payment companies to call on them to take tougher action on cryptocurrency trading.

In a statement, the PBOC said banks have been urged not to provide products or services such as trading, clearing and settlement for cryptocurrency transactions.

The Agricultural Bank of China, the country’s third-largest lender in terms of assets, said it would follow the guidelines of the PBOC.

He also said he would perform due diligence on clients to weed out illegal activities involving cryptocurrency mining and transactions.

The Postal Savings Bank of China also announced that it will not facilitate any cryptocurrency transactions.

China orders banks to stop supporting cryptocurrencies (Image: Getty)

China orders banks to stop supporting cryptocurrencies

China orders banks to stop supporting cryptocurrencies (Image: Getty)

The country’s mobile and online payment platform, Alipay, has announced that it will set up a monitoring system to detect illegal cryptocurrency transactions.

The latest move against the cryptocurrency comes after authorities in southwestern Sichuan Province ordered bitcoin mining operations to shut down.

The region was China’s second-largest producer of bitcoin.

But due to the shutdown, over 90% of China’s bitcoin mining capacity will be shut down.

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China bans banks supporting cryptocurrencies

China bans banks supporting cryptocurrencies (Image: Getty)

It comes as other key mining centers in northern and southwestern regions of China have taken similar action against cryptocurrencies.

A Sichuan-based industry insider, who spoke on condition of anonymity, told the Global Times on Sunday: “The exit window is closing, and we are working to find mines overseas to place our devices. mining. “

Shentu Qingchun, CEO of Shenzhen-based blockchain company BankLedger, added, “We were hoping Sichuan would be an exception during the crackdown because there is a glut of electricity during the rainy season.

“But Chinese regulators are now taking a one-size-fits-all approach, which would reorganize and curb the booming Bitcoin mining industry in China.”

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Bitcoin banned in China

Bitcoin banned in China (Image: Getty)

The CEO continued, “This means that more than 90% of Bitcoin’s mining capacity, or one-third of the processing power of the global crypto network, will be put on hold in the short term.

“As a result, Chinese miners must form alliances to migrate abroad, to places like North America and Russia.”

Following China’s announcement to ban cryptocurrency services, bitcoin fell to its lowest level in two weeks.

Jonathan Cheesman, Head of OTC and Institutional Sales at the FTX Crypto Derivatives Exchange, said, “The PBOC crackdown goes beyond what was initially expected.

Chinese President Xi Jinping

Chinese President Xi Jinping (Image: Getty)

“Mining was phase one and speculation is phase two.”

China accounted for around 65% of global bitcoin production last year, according to a University of Cambridge study.

But last month, the Chinese cabinet, the State Council, said it would crack down on cryptocurrency mining and trading as part of a campaign to control financial risks.

China orders banks to stop supporting bitcoin

China orders banks to stop supporting bitcoin (Image: Getty)

Ruud Feltkamp, ​​CEO of crypto trading bot Cryptohopper, said: “People always react strongly to actions in China which create uncertainty, which is likely to negatively impact the price of bitcoin.

“China uses its own cryptocurrency and has every interest in having as little competition as possible.

“I think we will see miners leave China and move to where there is available or cheap energy.”

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