Bitcoin slides below $40k on news that China will crack down on crypto mining

Bitcoin slides below $40k on news that China will crack down on crypto mining

Chinese regulators are planning a stricter clampdown on cryptocurrency. This time around, they will be going after cryptocurrency mining and trading.

China’s Financial Stability and Development Committee (FSDC) revealed during its 51st meeting that it intends to tighten its leash on crypto mining and trading by focusing on lowering credit risks, severely punishing illegal transactions, and reforming medium-sized financial institutions. One of the three resolutions from the meeting noted that the regulatory body will “crackdown on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field.”

Industry participants are unsure about how the latest decision will affect the industry. However, considering China’s already anti-Bitcoin stance, industry participants are expected to prepare for the worst. A few days ago, news broke that the country had ban institutions from crypto-related activities.

The FSDC’s statement signals yet another blow for Bitcoin amid an already rough week. On May 19, Bitcoin crashed to the $30k region following a massive sell-off. As of press time, the price of Bitcoin had plunged to an intraday low of $35,383 after reclaiming $40k two days ago.

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