Bitcoin tumbles below $39,000
Business
May 20, 2021
Beijing: Bitcoin plunged below $39,000 for the first time in more than three months on Wednesday after China said cryptocurrencies would not be allowed in transactions and warned investors against speculative trading in them.
The comments sent the unit diving more than 10 percent and dealt it another blow soon after being battered by comments from tycoon Elon Musk and his Tesla car company.
Trading in cryptocurrencies has been banned in China since 2019 to prevent money laundering as leaders try to stop people from shifting cash overseas. The country had been home to around 90 percent of the global trade in the sector.
China should maintain its hard line on controlling virtual currencies to prevent wild speculation that may cause major financial losses to investors, according to experts.
China Ban Triggers Crypto Sell-off – Time To Invest in Bitcoin?
Last Updated: 19 May 2021
China’s relationship with the cryptocurrency industry has always been quite complicated. After a few years of keeping an eye on crypto, the country tried to ban it.
China declared that financial institutions were not allowed to provide services to crypto businesses, purposefully trying to suffocate the crypto sector within the country. However, it liked the idea of crypto, just not the decentralised part of it.
As a result, it started creating its own native cryptocurrency, the so-called digital yuan, which will be controlled by the central bank the People’s Bank of China (PBoC).
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