China Extends Crypto Transaction Ban

Friday, September 24th Bloomberg News reported that the People’s Bank of China has extended the crypto ban from Bitcoin to all digital currencies as they are not fiat currencies and cannot be circulated. This has been extended to mining crypto as well, as a result, Bitcoin’s price fell 8% as a result of the news. This comes fresh of the Bitcoin ban that was implemented in May of this year the price of Bitcoin down to $30,000 the lowest that it has been trading all year and caused a ripple effect of lows across the crypto sphere with Ethereum blockchain dropping 22% and Dogecoin falling to 36 cents according to CNBC.

Bitcoin and other cryptocurrencies were able to recover but with this latest news, the price of Bitcoin dropped 6% according to Yahoo Finance. China has stated that their energy and environmental crisis’s as well as the risks of fraud and money laundering are the reasons for this ban. However, reports have stated that these are not the only reasons for this ban in 2013 the People’s bank ordered a ban on Bitcoin making it illegal, in 2017 stopped all coin sails and targeted crypto exchanges by shutting them down locally, and just in 2019 blocked access to all cryptocurrencies exchanges banning websites and any domestic and foreign crypto exchanges. China stated that cryptocurrencies are not backed by real value and the prices can be manipulated and threaten the sovereignty of the digital yuan according to Reuters.  

However, some see China’s reluctance as a win not only for Bitcoin but for the US as well Sen. Toomey R-PA tweeted the following tweets once the announcement was made.

Sen. Toomey Tweets after the announcement

Though Bitcoin fell 8% when this was announced experts believe that this was short-term but after the initial shock of the announcement wears off prices will return to normal.  

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