The Chinese central bank demands a broader crypto crackdown announcing that other banks and institutions must crackdown on crypto transactions so let’s read more in our latest cryptocurrency news today.
The Chinese central bank demands from banks and payment institutions to stop providing a wide array of crypto services including transactions, opening accounts, and settlements. The Central Bank reportedly interviewed five banks including Alipay and requested that they don’t participate in crypt-related business as a part of the wider crackdown in the country and in the industry. Other banks like the Agricultural Bank of China, the China Construction Bank and the Postal Savings Bank of China as well as the Industrial Bank.
The Central Bank announcement came amidst China’s efforts to crack down on the crypto space especially in the mining industry. Bitcoin crashed by 12% when the financial committee in China like the BTC mining industry which is only one in the list of activities that posed a plethora of financial risks. The government said at that time:
“It is necessary to maintain smooth operation of the stock, debt, and foreign exchange markets, severely crack down on illegal securities activities, and severely punish illegal financial activities.”
That was the first time that the State council spoke against BTC mining and ever since the situation was not improved for the Chinese miners. Sichuan as we saw last week, the popular province for Bitcoin miners for much of the year banned BTC mining on account of the immense energy demands and cut off another popular mining province from the industry and joined a list of provinces that includes Xinjiang and Inner Mongolia.
As recently reported, For the longest time, China cracked down on speculative crypto trading and left the mining sector alone however now, mining has been an established business in the country for both the governemnt and the miners. But the carbon neutrality goal for china along with the Dogecoin trading, have raised concerns with the governemnt at quite an inconvenient time, the CCP’s 100th birthday on July 1. Crypto became a sensitive topic during the run-up to the celebration and the internet money is completely out of the government control which is why they see it as dangerous.