Bitcoin notices a $4k drop after The People’s Bank of China (PBOC) declared that all crypto transactions are now illegal in the country. While this anti-crypto stance is nothing now from China, it is worrying how much it influences the price of bitcoin. Especially in the short term. And sure enough, as soon as this news hit the mainstream, it pushed the price of bitcoin from $45k, down to $41k.
However, bitcoin is not the only digital asset that is targeted by the PBOC’s intense anti-crypto campaign.
The PBCO declared all crypto assets including ether and stablecoin tether as not eligible to qualify as legal tender. For that matter, the central bank of China made it abundantly clear that every digital coin is illegal. In addition to every service in relation to the said coins is now considered illegal.
Moreover, part of these forbidden services includes trading and exchange of crypto derivatives. Moreover, the government issued a ban for all Chinese residents to use any crypto services by foreign country operators.
The reason why China is on a such relentless anti-crypto mission is due to desire to implement its own digital yuan currency. In fact, China is already in the process of pilot testing of its own cryptocurrency. Yet, even with this plan in motion, US tether was still legal in China for funding crypto transactions, and used as a collateral in DeFi finances.
Well, from now on USDT is also illegal. Which is definitely expected, considering that the government in China pretty much monopolized the entire crypto market.
It remains to see whether the price of bitcoin will keep dropping in the upcoming days. And will the recent $4k drop of bitcoin as a direct result of China crypto-campaign will eventually recover. Whatever the outcome, one thing is for sure. China intensifying the efforts to completely eradicate all non-state crypto activity is certainly working, for now.
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