Bitcoin, the world’s largest cryptocurrency, fell by around 6% in response to the latest crackdown of Chinese authorities on crypto mining and trade.
On Friday, China announced a statewide crypto mining ban and vowed to hunt out “illegal” activities, putting pressure on bitcoin and other major coins, as well as crypto and blockchain-related companies.
In May, the Chinese State Council had ordered a crackdown on crypto mining and trade.
The ‘Notice on Further Preventing and Disposing of the Risk of Hype in Virtual Currency Trading,’ prohibits all crypto-related activities and contains a thorough list of banned behaviours, some of which were previously unregulated.
The People’s Bank of China (PBOC) recently issued a statement on its website said, “Government will resolutely clamp down on virtual currency speculation, and related financial activities and misbehaviour in order to safeguard people’s properties and maintain economic, financial and social order.”
Prior to the government crackdown earlier this year, virtual currency mining made up over half of the global supply of cryptocurrency.
Meanwhile, China’s Central National Development and Reform Commission (NDRC) issued a second notice detailing steps to further control virtual currency mining.
According to the statement, it intends to reduce the “hidden risks” in crypto mining in order to help China achieve its objective of carbon neutrality.
The notification dictates that central authorities will administer the crackdown on mining, and it requires the country’s provinces and cities to do border inspections to identify mining enterprises.
Mining companies were forced to dump machines in disappointment or take refuge in countries like as Texas or Kazakhstan when previous limits were placed on the business.