China Continues Its Crackdown on CryptocurrencyPublished August 6, 2021 by Elana K
China has ramped up its crackdown on cryptocurrency by calling for the shutdown of a company that allegedly provided crypto-related services.
China has ramped up its crackdown on cryptocurrency by calling for the shutdown of a company that allegedly provided crypto-related services. The statement came as both an announcement and as a warning, the latter directed toward other companies that offer/are considering offering crypto-services with the clear message: stop.
China’s Recent Crusade Against Cryptocurrency
China came out against cryptocurrency as early as 2013, but recently the Republic has stepped up its measures to stop mining and the use of crypto-services in general.
In May, China prohibited financial institutions from providing crypto-related services. The crackdown set off what is being called “the great mining migration,” sending bitcoin miners out of China and toward other places with more lenient regulations (namely, the United States).
In June, there was a wave of arrests of people suspected of crypto-activities. At the same time, regulators increased the pressure on financial institutions to cease and desist with their crypto-services.
Despite China’s crackdown, it’s estimated that between 65% to 75% of global data mining in 2021 has taken place in China.
The Chinese Influence on Crypto Values
Every time China has made a move against digital currency, the value of bitcoin and others have plunged. 2021 has seen particularly volatile swings, with bitcoin currently trading at about $35K, a 40% drop from its all-time high.
But China isn’t the only country cracking down. UK regulators recently banned the crypto exchange Binance. As cryptocurrency continues to grow in popularity, we can expect to see governments getting more involved in regulation.