• Monday, Aug 08, 2022
  • Last Update : 04:24 pm

Bitcoin slips after China central bank vows to crack down on crypto trading

  • Published at 09:05 pm September 24th, 2021
bitcoin
Representations of cryptocurrency Bitcoin are seen in this picture illustration taken June 7, 2021 Reuters

People's Bank of China says it will bar financial institutions, payment companies and internet firms from facilitating cryptocurrency trading

Bitcoin fell nearly 5% on Friday after China's central bank said it would crack down on cryptocurrency trading, banning overseas exchanges from providing services to mainland investors.

The largest cryptocurrency was last down 4.6% at $42,874, with smaller coins that typically trade in tandem with bitcoin also tumbling. Ether fell over 8% while XRP slipped 7%.

The People's Bank of China also said it will bar financial institutions, payment companies and internet firms from facilitating cryptocurrency trading, and will strengthen monitoring of risks from such activities.


Also read - El Salvador leads world in adopting bitcoin as official currency


"Crypto markets are in an extremely frail state overall, and these sorts of downswings speak to that; there's a degree of panic in the air," said Joseph Edwards, head of research at cryptocurrency broker Enigma Securities.

"Crypto continues to exist in a grey area of legality across the board in China."

Shares in cryptocurrency and blockchain-related firms also came under pressure with US listed miners Riot Blockchain, Marathon Digital and Bit Digital slipping between 4.1% and 5.1% in premarket trading. China-focused SOS slipped 1.2% while crypto exchange Coinbase Global fell 2.7%.

Earlier this year, Chinese authorities said they would crack down on cryptocurrency mining, sparking a massive sell-off of bitcoin and other coins.