Bitcoin Tanks as China Hint at Crypto Mining Crackdown

China is intensifying its anti-crypto stance. In its 51st meeting, the Chinese Financial Stability and Development Committee (FSDC) has announced it would be cracking down on cryptocurrency mining and trading activities.

The move is part of the FSDC’s move to minimize credit risks while at the same time cracking down on illegal financial activities. China’s actions have intensified the selloff experienced in the crypto market over the last couple of days. Bitcoin dropped by over 12 percent immediately after this news hit the market.

Following this announcement by the FSDC, Chinese miners have expressed uncertainty on what could follow. According to Thomas Heller of Compass Miners, Chinese miners are no longer sure of how the latest regulations could impact the crypto industry going forward. Heller noted that, unlike past regulatory announcements from China, this one seems to have thrown miners into a sea of uncertainty.

The announcement by the FSDC could not have at a worse time. Yesterday, the U.S too announced some regulations that could alter how investors and traders interact with the crypto market. In a report, the U.S treasury announced that as of 2023, all businesses would be required to report crypto transactions worth $10k and above.

The move by the U.S saw the foremost cryptocurrency plunge to lows of $30k on some exchanges. At the moment, Bitcoin is trading at around $36858. Since the Chinese news, the whole market has dropped by ten percent, with the market capitalization now standing at $1.58 trillion.

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