InstaForex

September 27, 2021

What happened? FUD From China Sends Crypto Market Into 'Red Ocean'!

 A while ago the community was shocked by a report that shook the crypto market causing the market to lose $ 150 billion with a sharp 5% drop. This is the effect of China’s crackdown on digital assets and declaring crypto transactions as illegal.


On Friday afternoon, September 24, the People’s Bank of China (PBoC) said that this latest decision was to prevent risks associated with crypto trading. The PBoC also stressed that they are committed to safeguarding national security and social stability.


Reported by several well -known websites such as Bloomberg, China’s central bank says that all crypto -related activities such as order matching, trading services, crypto publishing, and derivatives for digital assets are prohibited. The PBoC at the same time also announced that the direct ban on foreign exchange operating in China as quoted in CNBC.



"The exchange of crypto assets that use the internet to offer services to locals will be considered as carrying out illegal financial activities. In addition, those involved will be investigated ”.


The PBoC says that it has improved its infrastructure to identify crypto -related transactions and can eliminate all types of speculative trading activities. According to the PBoC, financial institutions and non -bank payment institutions cannot offer services for activities and operations related to crypto assets.


The price of Bitcoin has done a sharp decline of over 5% and is now trading at $ 41,089.47. Etheruem (ETH) was down 8% and traded $ 2,801.10.


Some assume that the PBoC statement reported by Bloomberg is fake news as claimed by trustnodes.com. Trustnodes stressed that what the PBoC said was merely a repetition of the rhetoric uttered in 2017 and this statement was released in the PBOC report dated 15 September.