China bans financial institutions from offering Bitcoin services
- 21 May 2021
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Bitcoin price drops shortly after China introduces new crypto ban
On Tuesday, China has tightened restrictions on cryptocurrency. According to Reuters, financial institutions and payment companies are now banned from providing cryptocurrency-related services, including registration, negotiation, clearing and settlement of digital currencies. In addition, Chinese regulators warned investors against speculative crypto trading.
Following Beijing’s crypto ban, Bitcoin and other digital currencies crashed on May 19 — the price of Bitcoin fell below $34,000, whereas Etherium and Dogecoin dropped by 25% and 29% respectively.
As stated by Entrepreneur, China’s recent crypto restriction is not a new prohibition, but rather a reiteration of a law that has existed for a few years.
