According to news agency Agence France-Presse, China’s central bank PBOC has banned financial institutions, payment companies and internet firms from trading in cryptocurrencies and outlawed cryptocurrency transactions. This is not the first time that such a big decision has been taken in China regarding cryptocurrencies. In May this year, the State Council of China made a commitment to bitcoin mining and trading in the name of curbing financial risks. Ten Chinese government agencies, including the central bank People’s Bank of China, as well as banking and foreign currency regulators, said in a joint statement that they would maintain and work together to crack down on speculative trading in cryptocurrencies.
Global prices of cryptocurrencies, including bitcoin, have seen massive fluctuations in recent times due to new regulations issued by China. Till writing the news, the price of bitcoin in India was up to Rs 33.7 lakh. After this latest action by China, the price of bitcoin has seen a fall on Friday.
Bitcoin, which was falling even before the announcement, fell by 6.0 percent to $42,256 after the announcement.
Recently, India’s central bank had also expressed concern over transactions in crypto currency. Reserve Bank of India Governor Shaktikanta Das had said that the central bank is extremely concerned about cryptocurrencies like Bitcoin.
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