China makes all crypto currency transactions illegal after ordering shut down of Bitcoin mining in Sichuan province, leading to crypto market prices dropping
Cryptocurrency market is down 3.42% on the last 24 hours (9.50am, Friday 17 December).
After a year of gains and record highs, crypto currencies are enduring a turbulent time with unpredictable price changes.
Sign up to our Money Savers newsletter
The i newsletter cut through the noise
Bitcoin and other leading crypto coins experienced a significant drop in share price after investors began dumping mining equipment as China announced fresh regulations.
- Bitcoin (BTC) -3.65% (£35,440.35)
- Ethereum (ETH) -4.43% (£2,914.50)
- Binance Coin (BNB) -1.18% (£398.37)
- Tether (USDT) -0.20% (£0.75)
- Solana (SOL) -2.53% (£133.56)
- Cardano (ADA) -4.61% (£0.94)
- XRP (XRP) -1.81% (£0.61)
- Avalanche (AVAX) -0.54% (£78.27)
- Polkadot (DOT) -5.72% (£19.10)
- Terra (LUNA) +1.59% (£48.32)
- Dogecoin (DOGE) -4.34% (£0.13)
- SHIBA INU (SHIB) -4.33% (£0.00002430)
It follows recent crashes brought on by Tesla making a u-turn on accepting Bitcoin as payment for its products and China clamping down on initial coin offerings, block exchanges and warned against speculative trading.
A further blow was dealt when China ordered Bitcoin mining in its Sichuan province to shut down completely and furthermore told banks to stop supporting crypto transactions, in a latest wave of restrictions on cryptos.
Now the country’s central bank, People’s Bank of China, has effectively banned digital coins after announcing all transactions of cryptocurrencies are illegal.
The decision has already had an impact on the global crypto market.
Bitcoin wasn’t the only cryptocurrency to feel the effects of Tesla’s decision. (Pic: Shutterstock)
Why is the crypto market down?
China’s crackdown on cryptos comes days after Musk’s shock announcement.
Musk’s decision signifies a sharp u-turn for Tesla who only started accepting Bitcoin as payment for its services in February 2021.
It came after the electric car company bought $1.5b (£1.06b) of Bitcoin shares, which in turn sent the market price of both the crypto and Tesla soaring.
The billionaire entrepreneur said: “We are concerned about rapidly increasing use of fossil fuel for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
Musk reaffirmed his belief that cryptocurrency has a “promising future” but that it “cannot come at great cost to the environment”, in his Twitter post.
Musk has been a long-time advocate of cryptocurrencies and the Tesla decision was felt across the market, with other digital tokens going down in price.
What is the price of Bitcoin and Ethereum?
The price of Bitcoin …….