• Crypto financial activities will be deemed illegal, including services from off-shore exchange accounts.
• China intensifies its clampdown on crypto-related mining and trading activities.
• Huobi, OKEx and large Chinese customers suffered the largest percentage drop.

China is a constant threat. China’s influence on the crypto market is declining. Following a brief market recovery following Evergrande’s turmoil, the People’s Bank of China declared crypto activities illegal, including those from crypto exchanges outside mainland china.

Dismissing Crypto For The Greater Good

The cryptocurrency market dipped by at least 5% on September 24th after People’s Bank of China and other central authorities released a notice dating to September 15th, declaring , , and even Tether do not hold the same status as FIAT currencies.

China already has imposed restrictions that prevent banks offering cryptocurrency-related services. Beijing’s take follows a series of allegations mainly stamping cryptocurrencies as “speculative,” or “leading to “criminal activities, or money laundering.As a result, China has banned mining and financial activities in the country, which previously caused Bitcoin’s price to retrace by more than 50%

China’s central bank PBOC seems to suggest that Bitcoin and crypto transactions are illegal. Here are some Google-translated screenshots from their blog. This will encourage a lot more capital to come from China/Asia and reinvest in the West. Source: https://t.co/4BUVJMmN9g pic.twitter.com/y5XwxlaJOy

— Gabor Gurbacs (@gaborgurbacs) September 24, 2021

Presently, China’s statement also targets off-shore exchanges, which Chinese consumers previously used to conduct crypto transactions. Chinese customers won’t be allowed to interact or transact cryptocurrency in China because exchanges have restricted access. Chinese consumers.

Wu Blockchain notes the spiraling effect of China’s decisions. In a series of tweets, he notes that Spark Pool (NASDAQ:), Ethereum’s largest pool, will cease technical support for Chinese customers. Moreover, NBMINER, the graphics card manufacturer, also announced they would “no longer provide technical support” for Chinese customers.

On The Flipside

• The crypto market no longer incurs significant losses after China clamps down on cryptocurrencies.

The Harsh Clampdown

In layman’s terms, China wants complete control over its financial payment system. So whilst dismissing cryptocurrencies such as Bitcoin and Etheruem, the People’s Republic of China has been developing and testing the e-Yuan as part of its strategy to challenge dollar domination.

China claims that crypto speculation and increased energy consumption lead to market restrictions. According to a September 3rd notice, authorities have increased monitoring of mining operations.

One of the key indicators for the Chinese policy follow-up is OKEx and Huobi’s reactions. These exchanges are the main users in China. It is worth watching how Binance reacts.

— Wu Blockchain (@WuBlockchain) September 24, 2021

What’s interesting is how exchanges whose main customer base will react to the new regulations. OKEx or Huobi, which have China as their main customer, must comply with the impose policy. OKEx prices fell by. The new Chinese policy has resulted in a 15% drop in OKEx prices. Wu Blockchain says that many companies are likely to move to Singapore because of its open-source crypto culture.

What is it worth?

While the Chinese crypto dominance is declining, we need to be cautious that other countries will continue to have an impact on the cryptocurrency market. This includes trading and mining.

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