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Cryptocurrencies Trade Lower as Chinese, Russian Authorities Strike

Published 30/08/2018, 15:12
© Reuters.  Cryptos drop as China extends promotional ban, Russia contemplates criminal activity definition.
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Investing.com - Cryptocurrencies were mostly lower on Thursday as Chinese authorities extended their ban of the digital assets, while Russia scrutinized keeping a wider eye on what it may categorize as criminal activity in the industry.

Bitcoin fell 3.63% to $6,859.90 at 10:10 AM ET (14:10 GMT) on the Bitfinex exchange.

Ethereum slid 6.17% to a trading price of $278.20 on the Bitfinex exchange.

XRP traded at $0.32715, down by 7.80% in the last 24 hours on the Poloniex exchange, while Bitcoin Cash, product of the Bitcoin fork and the fourth-largest cryptocurrency by market capitalization, traded down 6.77% to $531.15.

China extended its ban on the cryptocurrency industry to the special economic zone of Guangzhou, where commercial venues were banned from promoting crypto-related events. The Chinese government continued the crackdown on digital assets by banning all promotional activities in the area that were directed at digital currencies.

According to a statement by the Guangzhou Development District, the ban was the regulator’s latest attempt to protect the financial interests of the public, as the Chinese government remains determined to ensure the legal status of the yuan, prevent money laundering and maintain the stability of the financial system.

The news of the ban extension came after China-based multinational technology giant Baidu was told to shut down crypto-related online chat rooms earlier this week.

Beijing has started the clampdown on the crypto industry since last September, including banning hotels in Beijing from holding crypto events. Major social media platform WeChat blocked several crypto and blockchain-related accounts in August, while internet giant Tencent announced it no longer allowed crypto trading on its platform. E-commerce giant Alibaba (NYSE:BABA) also said it would restrict or ban accounts that engage in crypto trading.

In other news, reports said Russian regulators are considering the possibility of categorizing unauthorized cryptocurrency ventures as criminal activities. Earlier this year, Russian President Vladimir Putin said that the central bank would not accept any digital coin offering that is not supported by a fiat currency.

The BBC reported that the Russian Federal Financial Monitoring Service is looking to track cryptocurrency transactions, especially in Bitcoin, in view of fraud schemes, money laundering and terrorism funding.

“Due to anonymity and the inability to find correct sources of transactions, cryptocurrencies are used in gray areas… Lawmakers in many countries are concerned about this phenomenon which was confirmed by the analysis that we conducted on behalf of the president,” Putin’s former adviser German Klimenko told the BBC.

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