Prices of Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies nosedived after China’s Financial Stability and Development Committee (FSDC) decided to maintain its stance on Bitcoin mining in the country during its 51st meeting, with a plan to crack down on crypto mining and trading.
According to the report, the Chinese financial regulatory body will also focus on reducing credit risks, reforming medium-sized financial institutions, and punish illegal financial activities severely.
Thomas Heller, Co-Founder and CBO of Compass Mining, who broke the news on Twitter claimed that local crypto miners in the country are still unsure how the recent development will affect the industry.
Thomas Heller tweeted, “Vice Premier Liu He calls for a crackdown on bitcoin mining and trading activities. Anti-bitcoin (mining) news regularly comes up, but this is worth monitoring. Miners in China I’ve spoken with are unsure of the impact right now.”
News out of China: https://t.co/8fOJ0YpAlc
Vice Premier Liu He calls for a crackdown on bitcoin mining and trading activities.
Anti-bitcoin (mining) news regularly comes up, but this is worth monitoring. Miners in China I've spoken with are unsure of the impact right now.
— Thomas Heller (@thomasheller_) May 21, 2021
Anti-bitcoin news regularly surfaces but this seems to be different and worth monitoring.
As expected, the news has majorly affected the price of Bitcoin (BTC), Ethereum (ETH), and others. Even some proof-of-stake (PoS) powered digital currencies, such as Cardano (ADA), are also affected.
Bitcoin has plunged to an intraday of $36,679, while Ethereum has dipped below $2,500. Other cryptocurrencies have also had losses. How long this negative trend will last cannot be ascertained at the moment.
Unfavorable news from FSDC marks yet another blow to Bitcoin, Ethereum, and other cryptocurrencies during their rough week.
The crypto market also got hit yesterday after the United States Treasury called for the report of transfers that are more than $10,000 to the IRS by businesses, which is part of the Biden administration’s strategy of pushing for tax enforcement.