China intensifies crypto crackdown, Bitcoin dives
Beijing bans all crypto transactions, latest in a series of measures targeting the industry
Move comes as Chinese government steps up efforts to control financial risks
SHANGHAI/LONDON Sept 24 (Reuters) - China's most powerful regulators on Friday intensified a crackdown on cryptocurrencies with a blanket ban on all cryptocurrency transactions and mining, the latest in a series of measures targeting the industry.
The move, announced by the People's Bank of China (PBOC), the country's central bank, and other financial regulators, is the most comprehensive crackdown on cryptocurrencies by a major economy to date.
The ban prohibits all financial institutions and payment companies from providing services related to cryptocurrency transactions, including account opening, registration, trading, clearing, and settlement.
It also bans individuals and companies from participating in cryptocurrency mining, the energy-intensive process by which new coins are created.
The crackdown is the latest in a series of measures taken by the Chinese government to control financial risks and curb speculation in the cryptocurrency market.
In 2019, the PBOC banned initial coin offerings (ICOs), a popular fundraising mechanism for cryptocurrency projects.
In May of this year, the government ordered cryptocurrency exchanges to close and banned the use of cryptocurrencies for payments.
The latest ban is a further escalation of the government's crackdown on cryptocurrencies.
It is unclear how the ban will be enforced, but it is likely to have a significant impact on the cryptocurrency industry in China.
Bitcoin, the world's largest cryptocurrency, fell sharply on the news, losing more than 10% of its value.
The crackdown in China is a major blow to the cryptocurrency industry, which has been growing rapidly in recent years.
It is unclear whether other countries will follow China's lead and impose similar bans on cryptocurrencies.
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