Reasons behind China banning Cryptocurrency ?
Crypto currency ban in China has been implemented last week .
The directive from the People’s Bank of China declared all virtual currency-related business activities illegal, cutting the country off from overseas crypto exchanges.
China is not only the country to ban the trading of cryptocurrency. Nepal also has banned the trading of all digital currency.
Reasons Behind Crypto currency ban in China
On Sept. 24, China’s Central Bank declared all crypto-related transactions illegal, citing concerns about gambling fraud and money laundering.
According to the bank, trading cryptocurrency has given rise to disruption of economic and financial order. It also has promoted breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes, as well as money laundering. Moreover, the bank stated that the trading of cryptocurrency is seriously endangering the safety of people’s property.
China has long expressed its disapproval of crypto currencies. Due in part to their links to money laundering and exorbitant energy consumption.
Impact of Crypto currency ban in the Price of Bitcoin
Until now, most of the world’s crypto mining has taken place in China. Crypto exchanges are now struggling to figure out how to deal with Chinese customers.
After the announcement was made about the banning, global crypto currencies have seen volatile fluctuations. Bitcoin plunging below the $42,000 level before stabilizing, while Ethereum, tumbled more than 10% to below the $2,800 mark.
Hence, Crypto currency ban in China has put a global impact around the global impact over the world. China being a country with a strong economical position and a huge trading capability. Ban of one of the greatest source of trading is somehow a shock of entire world. Many people and countries are having an after affect after this decision. However , we believe that China will bring back a new idea for increasing its growth.