Bitcoin drops after China declares cryptocurrency transactions illegal
China is ramping up its cryptocurrency crackdown.
On Friday, Chinese government agencies declared all cryptocurrency transactions illegal and banned crypto mining across the country, Reuters reports. The People's Bank of China said that the Chinese government would "clamp down on virtual currency speculation, and related financial activities and misbehaviour in order to safeguard people's properties and maintain economic, financial and social order."
It was an example of China "intensifying its crackdown on cryptocurrencies," CNN wrote, which came after Chinese Vice Premier Liu He previously vowed the government would "clamp down on Bitcoin mining and trading activity." Bitcoin took a hit after Friday's announcement, dropping "as much as 7 percent," The New York Times reports.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Vijay Ayyar of the digital currency exchange Luno told CNBC that "Chinese regulators have always been extreme in their views and these comments are not new," but noted that these latest developments came amid a "slightly nervous environment for crypto," meaning "any comments of this nature will cause a sell off in risky assets."
Joseph Edwards, head of research at Enigma Securities, also told Reuters, "There's a degree of panic in the air. Crypto continues to exist in a grey area of legality across the board in China."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
Today's political cartoons - September 7, 2024
Cartoons Saturday's cartoons - football widows, meddling kids, and more
By The Week US Published
-
Smoking ban: the return of the nanny state?
Talking Point Starmer's plan to revive Sunak-era war on tobacco has struck an unsettling chord even with some non-smokers
By The Week UK Published
-
Crossword: September 7, 2024
The Week's daily crossword puzzle
By The Week Staff Published
-
Why can't China turn its economy around?
Today's Big Question The post-pandemic crisis puts pressure on Communist Party leaders
By Joel Mathis, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published