BITCOIN SHRUGGED OFF DUE TO REGULATORY PRESSURE ACROSS
Bitcoin fell 1.8% to $34,085. It has fallen about 18% in the last 13 days, its losses sparked by China tightening curbs on the cryptocurrency sector. Added to the on-going pressure, move by Britain’s financial watchdog to target the major Binance exchange, in the latest sign of regulatory pressure on the emerging cryptocurrency sector lead to Bitcoin further shrugged off.
China is taking its crackdown on crypto mining seriously. After issuing crypto mining bans in prominent regions like Sichuan and Xinjiang, the PBOC (People’s Bank of China) called for a prompt check and disablement of client accounts engaging in cryptocurrency transactions. Alipay, one of the largest payment platforms in the world, also conceded to the move. China, which is responsible for more than 70 percent of global cryptocurrency mining, is considering launching its own digital yuan, amidst concerns of cryptocurrency facilitating money laundering and illegal transfer of assets. Following the announcement, Bitmain Technologies, the world’s largest mining rig seller, has ceded operations. Prices of rigs, which refer to the computer infrastructure that goes into mining cryptocurrency, have tanked by over 75 percent since then. As per reports, the mining machine is currently selling at 700 yuans, significantly down from its price of 4,000 yuans in April 2021.
In Britain, the Financial Conduct Authority (FCA) said Binance could not conduct any regulated activity in Britain and warned consumers about the platform, which is coming under growing scrutiny globally. (**Binance, one of the world’s biggest crypto exchanges, last month withdrew an application to register with the FCA, which oversees anti-money laundering rules. Binance has been targeted by regulators across the world in recent months.)
The FCA’s move came as regulators across the world bolster oversight of the crypto sector. Their concerns include its potential for use in money laundering and other illegal activities, as well as risks to consumers. The FCA is also aligning with other major regulators, notably in the U.S. and Asia.
