Ten Chinese government agencies, including the central bank and banking, securities and foreign exchange regulators, said in a joint statement that they would work closely together to maintain a “high-pressure” crackdown on cryptocurrency trading.
The PBOC also banned financial institutions, payment companies and internet companies from facilitating cryptocurrency trading.
The measures come after
The Chinese government “will crack down on virtual currency speculation and related financial activities and misbehavior to safeguard people’s property and maintain economic, financial and social order,” the
In response to the latest move, bitcoin, the world’s largest cryptocurrency, fell more than 6 percent to $42.2167, after dropping about 1 percent.
Smaller coins, which normally rise and fall along with bitcoin, also fell. Ether fell 10 percent, while XRP was down a similar amount.
“There is a degree of panic in the air,” said
The move also affected cryptocurrency and blockchain-related stocks.
It is an “imperative” to end cryptocurrency mining, a key task to promote the high-quality growth of
Virtual currency mining had been big business in
The NDRC said it will work closely with other government agencies to ensure that financial support and electricity supply for mining will be cut off. The national planning agency also urged local governments to come up with a specific timeline and roadmap to eradicate such activities.
Previous restrictions, issued by local governments, crippled the industry as miners threw away desperate machines or sought refuge in places like