Cryptocurrency prices today surged, having rebounded from selling in the past few sessions, driven by an intensifying crackdown on the asset class in China. Bitcoin surged 5% to $44,269, having fallen to just below $41,000 in the wake of Friday’s announcement of a blanket ban on crypto mining and transactions in China – the most wide-ranging clampdown yet.
Ether, the coin linked to ethereum blockchain and the second largest cryptocurrency, rallied 10% to $3,167, recouping its Friday losses. Cardano prices were marginally higher whereas dogecoin was up 2% to $0.20. The performance of other digital tokens also improved as XRP, Litecoin, Uniswap, Stellar surged over the last 24 hours.
China’s central bank on Friday said all cryptocurrency-related transactions are illegal. The People’s Bank of China (PBOC) also said it will bar financial institutions, payment companies and Internet firms from facilitating cryptocurrency trading, and will strengthen monitoring of risks from such activities.
After the statement, the popular offshore exchange Huobi stopped allowing new users to register with a mainland China phone number and in a statement Sunday said it would “gradually retire existing mainland China user accounts” by December 31, as reported by Bloomberg.
China has been tightening its crackdown on cryptocurrencies, and its efforts to restrain the trading and mining are adding to the wild moves in bitcoin and other markets, which are already down hard from records set earlier this year.
In May, Beijing said it will shut down cryptocurrency-mining activities because they consume massive amounts of electricity, often from coal-fired power plants, while the country pledged to manage its carbon emissions.
(With inputs from agencies)
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