Crypto crackdown: Three reasons why Beijing issued blanket ban on all trading and mining
Business & Technology
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On Friday, September 24, China’s financial and securities regulators pulled the plug on cryptocurrency transactions and mining across the entire country. Crypto and blockchain-related stocks plunged, per Reuters.
- In May, regulators banned financial institutions from offering crypto-related services, driving the activity underground. The latest rules hope to suffocate its remaining sources.
Three reasons why Beijing is cracking down on crypto:
- Bitcoin mining is energy-intensive, threatening national and global environmental goals.
- Regulators see cryptocurrency speculation as disruptive to the country’s economic and financial stability, now a top priority.
- China sees crypto as a threat to its sovereign digital yuan, which is already being piloted.
