Bitcoin drops by 10% as China makes anti-crypto moves

As China’s crackdown on cryptocurrencies deepened, Bitcoin fell to a two-week low. The largest digital currency dropped by 10% to $32,350. Ether, the second-largest cryptocurrency, fell by 13% too and reached US$1,950.

On Monday, China announced it would gather the officials from its biggest bank to participate in a meeting. The subject of discussion for the meeting will be the possible ban on providing crypto services. It is the latest sign that China intends making every possible effort to shut down any loopholes in cryptocurrency transactions.

On Monday, the central bank and Industrial and Commercial bank of China’s representatives made the statement. They reminded Alipay and payment service provider companies about the regulations prohibiting Bank of China from engaging in crypto-related transactions.

Additionally, a Chinese city with rich hydropower has stepped up operations to control mining. Ya’an government officials told at least one bitcoin miner that the city has vowed to abolish all bitcoin and ether mining operations within one year.

After the Fed chose a tough policy turn last week, investment in risky assets has weakened

Although the stock market rose on Monday, analysts pointed out that concerns about the frothy corners of the market are staggering.

Oanda Asia Pacific Pte. Ltd. Senior Market Analyst Jeffrey Halle said: “If, as I expected, all global purchases continue to sink this week, Bitcoin will feel those cold winds.”

It is recognized that China estimated for about 65% of global Bitcoin production last year.

The Central Bank of China is developing an electronic version of the renminbi that China can track and control

Promoters of cryptocurrencies say they grant flexibility and anonymity. Though, Chinese regulators warn that this may encourage money laundering or other criminal activities.

The central bank said in a statement that on Monday, bank executives were called to a meeting where they were asked about their activities and told to “maintain financial stability and security.” It said that cryptocurrency transactions “disrupt the normal economic and financial order” and may encourage money laundering and other criminal activities.