Bitcoin falls after China reiterates call for crackdown on crypto mining and trading
Bitcoin takes a fall
Bitcoin has quickly fallen to $38,500 from $41,600 on a renewed call by Chinese officials to curb bitcoin mining and trading.
Vice Premier Liu He said China will crack down on bitcoin mining and trading. Here's the statement (in Chinese).
China has gone back-and-forth on this but I wonder if this time they truly step it up on power-usage concerns. Liu He is right at the top of the CPC, this isn't some low-level official.
But the reality is that you never know with China. Sometimes they walk the talk, other times they keep on talking.
This lands in a vulnerable market though and 65% of mining is done in China.
Statement translation via Google Translate:
On May 21, the Financial Stability and Development Committee of the State Council (hereinafter referred to as the Financial Committee) held its 51st meeting to study and deploy key tasks in the financial sector in the next phase. The meeting was presided over by Liu He, member of the Political Bureau of the CPC Central Committee, Vice Premier of the State Council, and Director of the Financial Committee. Relevant responsible comrades from member units of the Financial Committee attended the meeting.The meeting pointed out that the financial system will resolutely implement the decisions and deployments of the Party Central Committee and the State Council, increase support for the real economy, prudent monetary policy is flexible and appropriate, credit policies accurately meet the needs of market entities, liquidity remains reasonable and sufficient, financial services are improved, and financial services supporting epidemic prevention and control and economic and social development have achieved obvious results.The meeting demanded that the financial system must adhere to a sense of the overall situation, adhere to a stable character, scientifically and accurately implement macro-control, grasp the degree, and refrain from making sharp turns. It is necessary to comprehensively use a variety of monetary policy tools to maintain reasonable and sufficient liquidity, effectively prevent and defuse financial risks, and promote a virtuous economic and financial cycle. One is to further serve the real economy. A prudent monetary policy must be flexible, precise, reasonable and appropriate, continue to implement policy tools that directly reach the real economy, strengthen the vitality of micro-subjects, stabilize enterprises and ensure employment, and vigorously support the development of inclusive small and micro businesses, rural revitalization, manufacturing, technological innovation, and green transformation. The second is to resolutely prevent and control financial risks. Adhere to the bottom line thinking, strengthen the comprehensive scanning and early warning of financial risks, promote the reform of small and medium financial institutions, focus on reducing credit risks, strengthen the supervision of platform enterprises' financial activities, crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field. It is necessary to maintain the smooth operation of the stock, debt, and foreign exchange markets, severely crack down on illegal securities activities, and severely punish illegal financial activities. It is necessary to strictly guard against external risk shocks, effectively respond to imported inflation, strengthen anticipation management, strengthen market supervision, and prepare response plans and policy reserves. The third is to continue to deepen reform and opening up. Further promote the market-oriented reform of interest rates and exchange rates, and maintain the basic stability of the RMB exchange rate at a reasonable and equilibrium level. Speed up the reform of the capital market and promote the high-quality development of the bond market. Deepen the reform of financial institutions, return to the roots, stick to its position, and carry out investment and financing activities in accordance with the green concept. Continue to expand high-level financial opening.