The People’s Bank of China on Friday announced their intentions to once again take up arms against digital currencies and to crack down on crypto trading.
This unexpected move comes amid the hype in the crypto market due to the speech of the Chinese paramount leader Xi Jinping who appeared to endorse blockchain, even asking companies to capitalize on it.
However, the central bank clarified that there is a difference between cryptocurrencies and blockchain technology and issued a warning against the risk involved in crypto trading.
According to the Chinese authorities, “There are multiple risks in virtual currency issuance financing and trading, including false asset risk, business failure risk, investment speculation risk, etc. Investors should enhance their risk prevention awareness and beware of being fooled, being fooled.”
In order to impede the threats of trading with digital assets the Central bank will “adopt monitoring measures such as interviews, inspections, and bans on the monitored entities.”
The new Chinese stance has already had an impact on the crypto market as can be seen by the price of Bitcoin which dropped more than 10 percent in the last day to end up at $7160.
Furthermore, yesterday appeared reports by multiple media outlets that the Shanghai offices of crypto exchanges Binance and Bithumd have been raided by the local police, however, both crypto firms have since refuted this.