China Blocks the Use of Crypto Coins

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The Chinese government has more or less prohibited banking federations in the country from working with crypto coins. The move would be responsible for a significant drop in the price of bitcoin, among others.

 

Three major banking federations in China have written that their members will no longer be allowed to give customers access to crypto platforms for trading and storing digital coins. They are also no longer allowed to issue insurance policies for companies that trade in crypto coins. Members of the banking federations are thereby warned that crypto coins are not real money.

Web platforms are also instructed to no longer host crypto companies. Even advertisements for these activities would be banned. The mandate is the latest in a long series of steps by the Chinese government to impose increasingly strict rules for mining and trading digital coins.

Although the country sees a lot of future in blockchain, the Chinese government considers the prices of crypto coins to be particularly unstable. It, therefore, seems that China wants to limit the risks to its own financial market with this.

The value of bitcoin has dropped by more than 12 percent in the past 24 hours, according to CoinMarketCap, which monitors the prices of various crypto coins. The price of the largest crypto coin thus dropped below $ 40,000 for the first time since the beginning of February. In mid-April, a bitcoin was still worth more than $ 60,000.

The measures taken by China have partly caused the decline. Still, last week the price of bitcoin also fell sharply after Elon Musk announced that Tesla would stop accepting payments in bitcoin for environmental reasons.

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