Last Friday, China caused another stir.
Ten authorities, including the National Bank and the Supreme Court, declared unequivocally: First, from now on all transactions in cryptocurrencies will be considered illegal;
Second, the creation of crypto units, known as mining, will be put to an end in the Middle Kingdom.
Martin Hock
Editor in business.
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This was actually not an insignificant announcement for the industry: It is not only the most populous country on earth, but also, after the data service Chainalysis, the country that is the fourth most important internationally for the use of crypto systems.
In fact, the prices of the cryptocurrencies fell as a result. Bitcoin, still the size leader, lost almost 9 percent. However, the cyber coin remained in its most recent - due to its inherent volatility, large - trading range. Technically, the price fell below the 200-day line, but it had done so for the first time in June. The longer-term trend has been negative since April, and nothing substantial changed on Friday either. On Monday, the rate again approached the $ 44,000 mark, still 2.5 percent, and the high on Friday has been reached again and crossed the 200-day line again.
On the one hand, the reason is that Friday's announcement contained essentially nothing new. Crypto transactions were previously banned in China, and mining was fought beforehand. While three out of four Bitcoins were still being produced in China in September 2019, it has recently been less than every second. However, there is a reaction to the latest announcement: The crypto exchanges Huobi and Binance have declared that they will no longer accept users from the People's Republic and will close existing accounts by the end of the year.
Now there are no more ambiguities, tweeted Henri Arslanian, “Crypto Leader” of the management consulting group PwC. "This regulatory mania seems to come in cascades and is just one of countless, ongoing attempts to regulate the use of crypto currencies in China," says Julian Hosp, founder of the CakeDeFi crypto platform. "So far, however, it has not been fruitful, and the effects on the crypto market each time seem less significant than before." This time, however, there is a striking influx of new capital into decentralized crypto exchanges such as Uniswap in order to store crypto currencies completely decentralized. Chinese users had already found ways to circumvent bans. Some crypto fans are particularly optimistic: Bitcoin's price increases are often preceded by attemptsTo ban crypto investments.