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Bitcoin falls sharply after China signs the crypto collapse

Bitcoin fell 14% to its lowest level since early October when Chinese regulators stepped up their efforts to use financial institutions.

In a statement issued on the People’s Bank of China’s WeChat account, banking and online organizations state that financial and payroll organizations should not receive cash payments as payment or services.

Real money “is not real money” and “should not and should not be used as money in the market”, the groups said in a statement released on Tuesday. the recent increase in prices as in “comparison”.

Bitcoin was trading at a price of over $ 38,500 Wednesday morning in Asia, according to the Bitstamp exchange.

Growth reflects China reduction campaign corporate events in cryptocurrencies as they plan to launch their digital currency. Other markets such as the US remained open for action in the institutions.

“Some of the blood has digital renminbi, part of it is the lack of control over the flow of money and part of it is trying to ensure that people are not insulted,” said Paul Haswell, a partner of law firm Pinsent Masons in Hong Kong, China.

China’s pressure on cryptocurrencies intensified in 2017 to close the same exchange in the country, which used to be for many businesses around the world.

Government objectives of digital renminbi, which can give the central bank a history of all financial transactions in real time, can provide a free payment method to compete and major online platforms from Ant Group and Tencent.

In the US, regulators have helped stockbrokers buy cryptocurrencies and allowed the list about crypto exchanges in public markets. Major US financial institutions such as Goldman Sachs and JPMorgan are investigating giving money in digital currency for asset management clients.

The price of bitcoin has risen 300 percent in the last 12 months, though Recent sales.

“I would not be surprised to see other rulers and legislators doing the same [as the Chinese restrictions] in the coming weeks to warn investors about the dangers of fraudulent transactions or the disruption of the crypto market, ”said Henri Arslanian, the global head of PwC’s consulting firm.

“The reality is that we are seeing an influx of players from businesses and investment organizations in these areas and it seems to be declining in the near future.”

The recent volatility of cryptocurrency prices has sparked skepticism among institutional investors over their value, with UBS Wealth Management and Pimco description of reservations about the potential for digital currency as a commodity.

Most cryptocurrencies are not regulated in Hong Kong, an independent Chinese sector. However, in November, the city’s Financial Services and Treasury Bureau published a proposal that would prevent retailers from selling the company’s stock.

“If there is anything I feel like the market is growing in Hong Kong when it comes to cryptocurrency companies,” Haswell said.

Additional reports of Wang Xueqiao in Shanghai

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