Bitcoin falls further as China cracks down on crypto-currencies

Bitcoin falls further as China cracks down on crypto-currencies
2 Min Read

Daily US Times: The price of Bitcoin fell below $34,000 for the first time in three months on Wednesday, after China imposed fresh curbs on crypto-currencies.

China banned payment firms and banks from providing services related to crypto-currency transactions.

Beijing also warned investors against speculative crypto trading on Tuesday.

It follows falls in Bitcoin of more than 10% last week after electric car maker Tesla said it would no longer accept the currency.

Bitcoin recovered some ground on Wednesday afternoon, although it was still down -10.4% at $38,131.

Meanwhile, other digital currencies such as Dogecoin and Ether, which acts as the fuel for the Ethereum blockchain network, lost as much as 22% and 24% respectively.

Tesla shares fell more than 3% on Wall Street at the same time, possibly because of the company’s exposure to Bitcoin.

Tesla, owned by Elon Musk, still holds around $1.5bn worth of the crypto-currency.

In order to curb money-laundering, crypto-currency trading has been illegal in China since 2019. But people are still able to trade in currencies such as Bitcoin online, which has concerned Chinese authorities.

On Tuesday, three state-backed organisations, including the China Banking Association, the National Internet Finance Association of China and the Payment and Clearing Association of China issued a warning on social media.

The state organisations said consumers would have no protection if they were to incur any losses from crypto-currency investment transactions.

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