By Dhirendra Tripathi
Investing.com – Shares of blockchain- and crypto-related companies were taking a beating Friday as authorities in China vowed a strict crackdown against digital currencies.
The cryptocurrency exchange Coinbase (NASDAQ) dropped 4% in premarket trading on Nasdaq. Marathon Digital, Bit Digital (NASDAQ):, Hut 8 Mining(TSX:), and Riot Blockchain Inc. NASDAQ:) all fell between 7%-8% during premarket trading.
MicroStrategy (NASDAQ:), one of the biggest investors among listed companies, fell 6%. Argo Blockchain (LON:) dropped 13% in London trading.
The warnings led to a slump in the value of Bitcoin () and other digital currencies as well. The largest cryptocurrency slumped below the $41,000-level and then recouped it. Ethereum fell 19% and Dogecoin 16%.
People’s Bank of China reiterated its long-held view that all digital currency activities are illegal while pledging to crack down on the market.
“Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies,” according to a translation of comments the central bank posted as a Q&A on its website.
The PBOC also advised banks and payment institutions like Ant Group Co Ltd (HK:) against providing crypto-linked services.
It’s not the first time China has talked tough on cryptocurrencies. Beijing had already cracked down on cryptos in June and forced many mines to close. China was responsible for over half the global Bitcoin mining output.
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