Bitcoin at a two-week low (-20% in the last seven days and -4% today at $ 32,500) under the blows of the ongoing repression by the Beijing government. Tether also falls below the $ 2,000 threshold and loses more than 5% (-22% in the last week). Major Chinese banks – called to order during a meeting, from Industrial and Commercial Bank of China to Agricultural Bank of China – and the electronic payment service Alipay have announced that they are refusing to help customers trade Bitcoin and other cryptocurrencies after the central bank indicated to step up enforcement of the government ban.
Regulators seem concerned that, despite the 2013 ban on Chinese banks and other institutions handling cryptocurrencies, the state financial system may be indirectly exposed to risk. Beijing also fears that users may evade controls.
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Regulators even tightened bans against cryptocurrency management in 2017 and publicly reminded banks of their potential risks in May, perhaps reflecting concern that cryptocurrency mining and trading would continue. The closing of the operations of mining of cryptocurrencies. However, in recent years, people have shifted to trade digital currencies on over-the-counter platforms and even offshore exchanges. What is happening in these hours is a sign that China will do everything necessary to close any possible escape route, especially not to lose control of the situation just as it prepares, after several tests, to launch an electronic version of the yuan.
According to the Chinese central bank, crypto-related activities “break the financial order and also generate risks of criminal activities such as illegal transfers of cross-border assets and money laundering.” Another argument used by the Beijing authorities is that mining requires huge amounts of energy.