The renewed crackdown of China on the cryptocurrency industry has wiped off nearly $400 billion in value from the total digital currency market. This took place as a major bitcoin mining hub has ordered the miners to shut down all kinds of operations. Bitcoin was nearly down by 2% while trading at $32330.21. The other cryptos, including ether and XRP, were also sharply dealing with the lower rate on Monday.
From the past few years, China has stepped out of its efforts to rein in the cryptocurrency industry in this country. On Friday, the authorities in the Sichuan province of China ordered the crypto miners to shut down all their operations. Sichuan is one of the largest bitcoin mining centers in this country.
Many of the bitcoin mines from the southwest Chinese province remained shut down as of Sunday. This move in Sichuan is coming after other mining provinces in China, namely Inner Mongolia, made a shutdown of crypto mining. In May, Beijing also called for a crackdown on bitcoin mining. It is highlighting how the order is trickling down from the top.
The People’s Bank of China has spoken to Alipay and some of the major financial institutions. The central bank has said that it has urged them not to provide crypto-related services. It also includes the opening or clearing of complete settlements.
These are not at all new rules. But it is showing how the top regulators of China are stepping up to monitor and pressurize the financial institutions related to cryptocurrency.
China has banned its local cryptocurrency exchanges in 2017. The country has forced them to move towards completely offshore. However, it did not stop the Chinese traders from buying and selling digital coins. It has added a layer of complexity to the trading of crypto.
It was marking the possibilities for the Chinese traders to move their Chinese yuan to a platform for buying cryptocurrencies. As of Friday, the Sichuan authorities have notified the miners to shut down the operations as the bitcoin price has slipped around 16%. The central bank notice is adding an extra amount of pressure to the entire situation.