Why China’s Renewed Bitcoin Crackdown Isn’t Telling On Many Significant Levels

543
Why China’s Move Against Bitcoin Is Turning Out To Be The Best Thing Ever For The Crypto Market
Advertisement
   

Even as Bitcoin attempts to gain a footing in the now downsized market owing to massive dumping witnessed in May following China’s ban on crypto-related activities, the PBOC seems not to be backing down on its move against Bitcoin miners and traders but instead, seems to have intensified its crackdown.

On July 6, the Beijing Local Financial Supervision and Administration Bureau and People’s Bank of China Business Management Department jointly issued another warning dubbed “Risk reminder on preventing virtual currency trading activities”

In the report, they stated to have closed in on Beijing’s software firm, Tongdao Cultural Development Co. Ltd. and shut it down over suspicion that the company was providing software services for virtual currency transactions.

The two bodies proceeded to “solemnly warn” institutions within their jurisdictions against providing business premises, commercial display, marketing, and paid diversion services for virtual currency-related business activities.

“Financial institutions and payment institutions within the jurisdiction shall not directly or indirectly provide virtual currency-related services to customers “

Advertisement
   

This warning comes in the wake of a series of other warnings meted upon Chinese nationals as well as non-nationals from getting involved in dealing in virtual currencies in most China states.

These warnings have had a toll on the price of Bitcoin as well as other cryptocurrencies since PBOC announce a ban in May and started cracking down on miners and traders in China.

Following this announcement, for the better part of the day, Bitcoin remained unwavering although witnessing a 4% drop from $35,055 to $33,530 after the news started spreading on Twitter.

BTCUSD Chart By TradingView

However, according to market data, it appears that China’s negative news and bans on crypto are losing control on the price of Bitcoin as price changes go almost unnoticed when China sends a new warning.

Amid China’s ban, U.S.A has witnessed an increasing number of Lawmakers calling for the adoption of Bitcoin as a solution to perennial problems that are hindering the USA from realizing its full potential in renewable energy.