Bitcoin price woes continue as China cracks down on cryptocurrency

The Bitcoin (CRYPTO: BTC) price continues to slide after China announced its hard stance against cryptocurrency. Here’s the lowdown.

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Bitcoin (CRYPTO: BTC) woes continue to pile up this month as China announced its sweeping ban against financial institutions and payment companies providing services related to cryptocurrency. 

China’s hard stance on cryptocurrency

In a joint statement from the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China, the government bodies said: 

Recently, virtual currency prices have soared and plummeted, and virtual currency trading speculation has rebounded, which has seriously infringed on the safety of the people’s property and disrupted the normal economic and financial order.

Virtual currency is a specific virtual commodity that is not issued by the monetary authority, has no monetary properties such as legal compensation and compulsion, is not a real currency, and should not and cannot be used as currency in the market.

Alongside bans against financial and payment institutions from cryptocurrency-related activities, the move also prohibited activities such as the marketing and promotion of virtual currency-related business activities. 

The statement encouraged individuals to improve their financial awareness and understanding of risks, saying: 

Virtual currency has no real value support, and prices are extremely easy to be manipulated. Related speculative trading activities have multiple risks such as false asset risks, business failure risks, and investment speculation risks.

Consumers must increase their risk awareness, establish correct investment concepts, refrain from participating in virtual currency trading hype activities, and beware of personal property and rights damage. Personal bank accounts should be cherished and not used for virtual currency account recharge and withdrawal, purchase and sale-related transaction recharge codes, and transfer of relevant transaction funds, etc., to prevent illegal use and personal information leakage.

Bitcoin price continues to slide 

China’s hard stance against cryptocurrencies adds to recent Bitcoin price woes. Last week, Tesla Inc (NASDAQ: TSLA) CEO Elon Musk announced the company would no longer accept Bitcoin as a payment option. 

Bitcoin has now hit a 4-month low of US$41,300 at the time of writing. The Bitcoin price has slumped 10% this week alone and is down more than 30% since its all-time high of US$64,854 reached on 14 April. 

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