China’s heavy handedness on cryptocurrencies is again taken a toll on prices of all cryptocurrencies including bitcoin, ethereum and ripple with reports emerging that Chinese authorities are targeting mobile apps and online platforms used for cryptocurrency trading.
According to a report on Bloomberg, the Chinese government is working plans to bring about a ban on domestic access to local and offshore platforms that provide centralized trading. The report cites unidentified sources within the government who also revealed that Chinese officials are targeting those providing trading services like market making (providing bids and offers) and other market infrastructure. The report also suggests that smaller transactions between individuals may be permitted, but trading at the exchange level will be banned.
The cryptocurrency market was already reeling under pressure due to price declines but soon as these reports emerged losses started mounting in double digit percentage values.
Bitcoin price is currently down 15 per cent (global average) while ethereum has lost over 20 per cent of its value. Ripple has also suffered from a 30 per cent value loss according to Coinmarketcap.com.
China has been at the center of the cryptocurrency related ups and down lately with the crackdown on cryptocurrencies beginning in 2017. The Chinese government first banned initial coin offerings (ICOs), which meld aspects of crowd funding and virtual currencies. Then it targeted local exchanges, telling them to halt trading in digital assets. More recently, authorities have looked to discourage bitcoin mining.