The Chinese Central Bank officially declared any kind of crypto transactions illegal on September 24. And the new blanket ban includes cryptocurrency mining to put cold water on the market’s future.
China’s central bank cited concerns about potential money laundering as well as gambling frauds. However, the announcement received a mixed response from the crypto community all over the world.
Likewise, it initiated a sharp decline for major cryptos, especially Bitcoin. China held the top mining position to supply circulating BTC in the market. The price almost fell by 10% right before checking a somewhat faster recovery.
Many other assets have also dipped significantly, creating chaotic uncertainty among the holders. Of course, crypto exchange platforms are concerned about potential mainland Chinese clients.
Not to mention, the crackdown almost coincides with the US treasury dept’s upcoming regulation. Even India is rumored to set strict or banning regulations soon enough.
Meanwhile, Indonesia’s trading minister revealed the regulations become harder for the assets. But he confirmed that there’s no plan to put a blanket like China right away.
Chinese authorities are well-known to impose repeated crackdowns on crypto assets from time to time. And it eventually called quits on mining operations to affect the overall circulating supply.
Political pundits on each side of the aisle already start to reiterate previous opinions. The US government is yet to say anything officially on the new banishment from China.
Still, several US lawmakers responded in different ways on social media. Almost everybody seemed to point out America’s gain from China’s loss.
Though the US covers the trading, China held the mining to ensure maximum supply. China mined nearly 47% of new supply against the USA’s 17% mining in April 2021 alone.
Multiple crypto experts are doubtful about the overall success of Chinese absolute banishment. Blockchain technology is extremely difficult to monitor, exploit or track down.
Therefore, citizens on China’s mainland may consider trading or mining altcoins with halts. Cutting the epicenter of crypto mining is sure to change the altcoin supplying specs.
