The Agricultural Bank of China banned clients from trading Bitcoin and other cryptocurrencies, causing the Bitcoin price to fall below $32,000.
Bitcoin cost has dropped into a two-week low, after negative market news from China. One of China’s biggest Deutsche banks has declared a ban on clients dealing with any sort of digital assets.
On June 21, the Agricultural Bank of China declared that it won’t conduct transactions or engage in any business related to cryptocurrencies. The bank also prohibited all its clients from participating in cryptocurrency transactions.
At the exact same time, this bank also strengthens investigation and oversight of suspicious transactions. Once the violations are found, the Agricultural Bank of China will freeze the trade, terminate the contract and report it to the Chinese government “immediately”.
According to Twitter accounts @tier10k, only 15 minutes after it had been posted, the note was deleted from the Agricultural Bank of China. But this had a direct effect on the cryptocurrency marketplace.
In only a couple of hours, Bitcoin has dropped by almost $3,000, to now only $31,800/BTC, that’s the coin’s lowest cost in a couple of weeks. In a 24-hour variety, Bitcoin has dropped by almost $4,000.
Agricultural Bank of China is one of the “Big Four”, the four biggest banks in China. This bank was established in 1951 and now has 320 million individual clients, 2.7 million corporate clients and 24,000 branches. According to statistics of S&P Global, Agricultural Bank of China is among the three biggest banks in the world in 2020, with total assets of around 3.572 billion USD.
China is cracking down on cryptocurrency mining activities. The authorities of the areas of Xinjiang, Inner Mongolia and Qinghai state of this country have announced plans to shut the majority of the Bitcoin mining pools. Yunnan state announced it will crack down on illegal activities, and Sichuan authorities are discussing how to cope with it.
According to Coindesk, the hash speed of the whole Bitcoin network has hit its lowest level since November 2020. This could be caused by an attempt to crack down on cryptocurrencies from the Chinese government.
The crypto community speculates that China’s recent activities against cryptocurrencies are to clear the way for the soon-to-be-launched Digital Yuan (CBDC). Some leaked information stated that the Agricultural Bank of China itself is creating a mobile application to connect to the CBDC.
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