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Bitcoin slips after China central bank vows to crack down on crypto trading

Published 24/09/2021, 10:58
Updated 24/09/2021, 11:00
© Reuters.

By Tom Wilson

LONDON (Reuters) - Bitcoin fell nearly 5% on Friday after China's central bank said it would crack down on cryptocurrency trading, banning overseas exchanges from providing services to mainland investors.

The largest cryptocurrency was last down 4.6% at $42,874, with smaller coins that typically trade in tandem with bitcoin also tumbling. Ether fell over 8% while XRP slipped 7%.

The People's Bank of China also said it will bar financial institutions, payment companies and internet firms from facilitating cryptocurrency trading, and will strengthen monitoring of risks from such activities.

"Crypto markets are in an extremely frail state overall, and these sorts of downswings speak to that; there's a degree of panic in the air," said Joseph Edwards, head of research at cryptocurrency broker Enigma Securities.

"Crypto continues to exist in a grey area of legality across the board in China."

Shares in cryptocurrency and blockchain-related firms also came under pressure with U.S. listed miners Riot Blockchain, Marathon Digital and Bit Digital slipping between 4.1% and 5.1% in premarket trading.China-focused SOS slipped 1.2% while crypto exchange Coinbase (NASDAQ:COIN) Global fell 2.7%.

Earlier this year, Chinese authorities said they would crack down on cryptocurrency mining, sparking a massive sell-off of bitcoin and other coins.

Latest comments

decentralised money management is what is coming next after the digitalisation. They can cry, scream and shout, but like every single evolution in humanity, it will come. They will fight back cause it is a reflection act, to keep the obsolete paradigm, but darling, as the petrol will go, so the Devil in the society which is The Central Bank.
China should start everyday by issuing a statement how much the hate crypto unless it is their s-coin eyuan :) Sorry to break it to you comrade crypto is here to stay.
I am buying, please sell to me ))
Sell while u can
Fake , just old news
well, all coins basically fell down
Hopefully this will lead to a greater outflow of Chinese nationals fed up with this overbearing government.Good news once again, they can try to stop it but they can't. This is a sign they are scared once again.Hold the line and don't sell!!!
Communist Russia tried stopping people from owning USD, it was illegal to have USD and other strong currencies yet people always found way to buy USD on black market
@wealth team this was released in early september .. you know this and still report it today knowing it causes FUD .. you are just as manipulative as the mainstream news !! Shame on you
I just know China has no interest in making this world a better place…all thy want is to conquer it n rule it
It ad for the average Chinese citizen that want to invest in a better future. Hopefully this will lead to a greater outflow of Chinese nationals fed up with this overbearing government.Good news once again, they can try to stop it but they can't. This is a sign they are scared once again.Hold the line and don't sell!!!
@wealth team this was released in early september .. you know this and still report it today knowing it causes FUD .. you are just as manipulative as the mainstream news !! Shame on you
nobody cares what the communist country thinks. Good, the other countries prosper while China stays on their rip off Fiat
please be fully informed regarding the risks and costs associated with trading the financial markets it is one of the riskiest investment forms possible
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