The value of bitcoin during today’s trading fell from $ 45,080 at its peak to $ 42,214 as of 19:33 Moscow time amid a statement by the People’s Bank of China that transactions with cryptocurrency are illegal, follows from data from CoinMarketCap.
Taking into account the adjustments in the exchange rate as a whole, bitcoin fell in price by 3.62% per day, and by more than 11% over the week. Etherium, the second largest cryptocurrency by capitalization, also fell in price against the background of statements by the Chinese regulator. Its rate fell more – by 6.88%, to $ 2.902.
Earlier today, the People’s Bank of China declared all transactions with bitcoin and other cryptocurrencies illegal amid testing of the national digital currency. The regulator noted that Bitcoin, Etherium and other digital currencies disrupt the functioning of the financial system and are used for money laundering and other crimes.
Prior to this, the PRC limited the use and mining of cryptocurrencies in the regions, but not on a national scale, although in May Vice Premier of the State Council of the PRC Liu He announced the need to tighten requirements for their production and trade. At the end of June, the authorities of the Chinese province of Sichuan, a major center for the extraction of cryptocurrency, banned mining. By June 20, 26 mining companies were cut off from the power supply.
In addition, mining in the first half of June was banned in three more regions of the PRC: Yunnan, Qinghai and Xinjiang. Large miners, including BTC.TOP and HashCow, have already left the country. The use of non-government cryptocurrencies in settlements in China has been prohibited since 2013.
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