Bitcoin has dropped below $ 30,000 for the first time in more than five months, hit by China’s crackdown on the world’s most popular cryptocurrency.
The digital currency fell to around $ 28,890 and has lost more than 50% of its value since hitting an all-time high of $ 64,870 in April. China has told banks and payment platforms to stop supporting digital currency transactions. An order follows Friday to stop Bitcoin mining in Sichuan province. On Monday, China’s central bank said it had recently convened a number of major banks and payment companies to ask them to take tougher action on cryptocurrency trading.
Banks were told not to provide products or services such as trading, clearing and settlement of cryptocurrency transactions, the People’s Bank of China said in a statement. China’s third-largest lender by assets, the Agricultural Bank of China, said it was following the guidance of the People’s Bank of China and would conduct due diligence with clients to root out illegal activities involving mining and transactions. of cryptocurrencies. The Postal Savings Bank of China also said it would not facilitate any cryptocurrency transactions.
Online and mobile payments platform Alipay, which is owned by Chinese financial technology giant Ant Group, said it would establish a monitoring system to detect illegal cryptocurrency transactions. World Bank rejects El Salvador’s request for Bitcoin How Bitcoin’s Vast Energy Use Could Pop Its Bubble Bitcoin Mining Council to report green energy use The latest move came after authorities in the southwestern province of Sichuan on Friday ordered the shutdown of Bitcoin mining operations.
Authorities ordered 26 mines shut down last week, according to an advisory that circulated widely on Chinese social media and was confirmed by a former Bitcoin miner. Sichuan, a mountainous region in southwest China, is home to many cryptocurrency mines, basically huge hubs with racks upon racks of computer processors, due to the large number of hydroelectric power plants there. China accounted for around 65% of global Bitcoin production last year, with Sichuan ranking as its second-largest producer, according to research from the University of Cambridge.
Concerns are mounting over the ongoing crackdown by China and fears that the widespread acceptance of Bitcoin and other digital currencies will be delayed due to concerns about their environmental impact,