The paradigm shift among investors means that the crypto market is now vulnerable to different fundamental factors. In late September, China’s regulator proclaimed that transactions of all cryptocurrencies would be illegal. The ban would have entailed a meltdown in the crypto market a couple of years ago. Nowadays, the market can easily take a punch. Popular digital tokens have certainly lost in value but the decline cannot be termed catastrophic. Bitcoin fell to $41,000 per token, albeit it did not update the lowest levels of June.
At present, the People’s Bank of China is stepping up its crackdown on the crypto industry. The regulator fixed all loopholes in the legislation which allowed local people to trade crypto online through foreign exchanges. Trading and mining crypto "seriously endangers the safety of people's assets," the Big Brother accounts for such drastic measures, citing wild swings in value of popular digital tokens. The regulator is intent to pursue the following noble aims: to firmly root out any efforts to promote cryptocurrencies, to clamp down on any illegal financial transactions and crimes, to safeguard property of citizens, and to maintain at all costs the economic and financial order as well as social stability.
The central bank warned that all financial institutions, payment platforms, and online firms are banned from facilitating crypto transactions. Besides, the regulator intensified monitoring risks arousing from trading and mining cryptocurrencies. From now on, the government will fight fiercely any speculative activity involving cryptocurrencies and related financial transactions as well as illegal behavior. All in all, the People’s Bank of China made it clear that people involved in such activities are considered criminals, so they will be prosecuted.
