Chinese government agents, including the securities regulator of the country and the People’s Bank of China (PBOC), noted in an announcement on Friday that all crypto-related industry movements are illicit and pledged to clamp down on illegal movements involving online currencies.
The agents stated that overseas crypto sales would be blocked from assisting Chinese citizens through the internet.
Bitcoin (XBT) drops about 5% on the announcement. Ethereum, another prominent cryptocurrency, dropped 9%.
The agents noted that China would create “new systems” to deal with risks presented by cryptocurrencies. China will slowly begin closing down cryptocurrency mining operations, and no fresh mining programs will be allowed, the Reform Commission and National Development noted in a different statement.
The statements are new in a series of difficult criteria from China on crypto.
Chinese Vice Premier Liu He stated to a group of finance administrators in May that the administration would clamp down on trading activity and bitcoin mining as part of its objective to attain economic stability. And banking and finance watchdogs stated that payment companies and financial institutions should not take part in any marketing campaign associated with cryptocurrency, nor should they offer crypto-related assistance to their customers.
The measures are not only about reducing economic hazards. The computers required for BTC mining consume a ton of electricity and computing power, raising questions about the expense to the setting.
China took the right decision to produce over 130 million metric tons of carbon emissions by 2024, according to Nature Communications research. This is more than the gross yearly carbon emissions produced from the Qatar and Czech Republic in 2016.
That type of production is also terrible for China’s enterprising environment plans. President Xi Jinping has promised to make China carbon-free by the year 2060, and China is already striving to include carbon emissions from other enterprises.