Many cryptocurrencies suffered enormous losses

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Many cryptocurrencies suffered enormous losses

Bitcoin and other cryptocurrencies fell amid a deepening crypto crackdown in China. China’s fight against cryptocurrencies began a long time ago. Last week the country moved in to shut down large crypto mines. Local mines power almost 80% of global cryptocurrency trade despite a domestic trade ban since 2017.

Bitcoin price fell as low as $ 32,309. Bitcoin has suffered heavy losses in recent weeks due to China’s actions, among other things.

But in the past few months, several provinces have ordered the closure of mines as the country keeps a keen eye on industry. Sichuan Province ordered mines to be closed last week. Sichuan is a major cryptocurrency hub as it is the country’s second most intensive mining region after Xinjiang. It’s no secret that mining cryptocurrencies requires a lot of electricity. The crypto industry flourished in the province thanks to its cheap and abundant electricity. Chinese media reported that power to all cryptocurrency mines across the region was cut off at midnight on Sunday.

Regardless, a Chinese city with abundant hydropower stepped up measures to curb cryptocurrency mining. A government official said that Ya’an had promised to eradicate all bitcoin and ether mining operations in 2021.

In May, the value of the world’s largest cryptocurrency fell due to three Chinese financial industry bodies. They reaffirmed a ban on financial institutions offering cryptocurrency services.

China is taking steps against cryptocurrencies

China had a tough time this week. The country turned the screw on crypto miners to stamp out financial risks from speculation. The crypto mines and their impact on the environment are another factor. The second largest economy in the world is in the middle of a far-reaching regulatory action against its fintech sector.

China’s central bank has held talks on crypto trade speculation with several major banks and payment institutions. In fact, the People’s Bank of China asked them to check the capital accounts of cryptocurrency exchanges and over-the-counter traders and to disconnect relevant payment connections.

Finally, the central bank reaffirmed that no banks or banking institutions are allowed to offer products and services to people who trade in cryptocurrencies. The central bank added that it recently summoned banks and payment institutions. Representatives from the Industrial and Commercial Bank of China and others to discuss crypto-related issues with the central bank. The country’s central bank stated that the virtual currency transactions disrupt normal economic and financial order.

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