{"id":50110,"date":"2021-09-24T14:13:14","date_gmt":"2021-09-24T11:13:14","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=50110"},"modified":"2025-09-02T16:13:00","modified_gmt":"2025-09-02T13:13:00","slug":"bitcoin-slips-below-42000-as-china-tightens-crypto-trading-regulation","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitcoin-slips-below-42000-as-china-tightens-crypto-trading-regulation\/","title":{"rendered":"Bitcoin slips below $42,000 as China tightens crypto-trading regulation"},"content":{"rendered":"<p>In the last hour, Bitcoin has fallen by more than $2,000 \u2014 briefly dipping below $42,000. This move came amid reports on September 24 of renewed crackdowns by China on the cryptocurrency industry.<\/p>\n<p>As of writing, Bitcoin is trading near $42,193.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"490\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/BTCUSDT_2021-09-24_13-40-13-1024x490.png\" alt=\"Bitcoin fell below $42,000 amid crackdown on crypto-trading regulation in China\" class=\"wp-image-150671\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/BTCUSDT_2021-09-24_13-40-13-1024x490.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSDT_2021-09-24_13-40-13-300x144.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSDT_2021-09-24_13-40-13-768x368.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSDT_2021-09-24_13-40-13-1536x735.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSDT_2021-09-24_13-40-13.png 1834w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Hourly BTC\/USDT chart on Binance. Data: <a href=\"https:\/\/ru.tradingview.com\/symbols\/BTCUSDT\/\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>Chinese journalist Colin Wu posted a link to a document from the National Development and Reform Commission (NDRC) of the People\u2019s Republic of China, dated September 24. According to the report, cracking down on crypto-mining enterprises has become part of the performance metric for municipal authorities.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Breaking: The Chinese government released detailed documents on cracking down on cryptocurrency mining. <a href=\"https:\/\/t.co\/yxGjzkUeLp\">https:\/\/t.co\/yxGjzkUeLp<\/a><\/p>\n<p>\u2014 Wu Blockchain (@WuBlockchain) <a href=\"https:\/\/twitter.com\/WuBlockchain\/status\/1441327873428627464?ref_src=twsrc%5Etfw\">September 24, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The committee stressed that mining consumes too much energy, negatively affecting the environment. Moreover, its contribution to China\u2019s economy is \u201cnegligible,\u201d and the risks associated with cryptocurrency transactions are very high.<\/p>\n<p>According to the report, local authorities should ensure \u201cstrict monitoring, strict risk prevention, and the introduction of a ban on expanding [the enterprises&#8217; equipment fleets] and control over the proper disposal of existing mining farms.\u201d<\/p>\n<p>According to Wu, the document brands mining as an \u201celiminated industry\u201d and bans investments in the sector.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">3, The document lists virtual currency mining as an eliminated industry and prohibits investment.<\/p>\n<p>\u2014 Wu Blockchain (@WuBlockchain) <a href=\"https:\/\/twitter.com\/WuBlockchain\/status\/1441329506518585344?ref_src=twsrc%5Etfw\">September 24, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Community members also noted a notice that appeared on the People\u2019s Bank of China\u2019s WeChat page. The regulator says that the activities of platforms that facilitate exchanges of digital assets among themselves or to fiat are illegal.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cA virtual currency does not have the same legal status as the official currency. \u2026 Business activity related to virtual currency is classified as illegal financial activity. \u2026 Providing virtual currency exchange services to Chinese residents over the Internet is also illegal financial activity,\u201d the document states.<\/p>\n<\/blockquote>\n<p>This approach makes it impossible for over-the-counter platforms that allow Chinese residents to swap fiat for cryptocurrencies and participate in the industry to operate. Such services are offered by exchanges like Huobi, OKEx and Binance.<\/p>\n<p><script async=\"\" src=\"https:\/\/telegram.org\/js\/telegram-widget.js?15\" data-telegram-post=\"forklog\/21608\" data-width=\"100%\"><\/script><\/p>\n<p>Despite the market reaction, some community members called the circulating information FUD. <a href=\"https:\/\/twitter.com\/scottmelker\/status\/1441338328146534402?s=20\">called<\/a> the circulating information <a href=\"https:\/\/ru.wikipedia.org\/wiki\/FUD#:~:text=Fear%2C%20uncertainty%20and%20doubt%20%E2%80%94%20%C2%AB,%D1%83%D0%BD%D0%B8%D0%BD%D0%B\u2026\">FUD<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe market learned of these news in mid-September and has already reacted to them. Don\u2019t fall for this FUD again,\u201d she added.<\/p>\n<\/blockquote>\n<p>Earlier, Wen Xinxian, director of the Payments and Settlements Department at the PBoC, called cryptocurrencies and stablecoins <a href=\"https:\/\/forklog.com\/en\/news\/pboc-views-cryptocurrencies-as-a-threat-to-the-traditional-financial-system\">a threat to the traditional financial system<\/a>.<\/p>\n<p>In May, the vice-premier of the State Council Liu He said measures were being prepared in <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-falls-below-37000-on-news-of-chinas-mining-ban\">relation to mining and Bitcoin trading<\/a>.<\/p>\n<p>In June, the PBoC held a meeting with representatives of financial institutions and <a href=\"https:\/\/forklog.com\/en\/news\/china-bars-banks-and-payment-systems-from-bitcoin-transactions\">prohibited them from participating in cryptocurrency transactions<\/a>.<\/p>\n<p>In July, the regulator\u2019s deputy head Fang Yifei called Bitcoin and stablecoins <a href=\"https:\/\/forklog.com\/en\/news\/pboc-deems-bitcoin-and-stablecoins-speculative-instruments\">speculative instruments<\/a>, threating the safety of the financial system and social stability.<\/p>\n<p>In August, the PBoC warned investors <a href=\"https:\/\/forklog.com\/en\/news\/chinas-central-bank-warns-investors-that-bitcoin-has-no-real-value\">about the lack of real value in Bitcoin<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/pboc-signals-continued-pressure-on-crypto-trading\">stated that regulatory pressure on crypto trading would continue<\/a>.<\/p>\n<p>Read ForkLog\u2019s Bitcoin news in our Telegram \u2014 news on cryptocurrencies, rates and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the last hour, Bitcoin has fallen by more than $2,000, briefly dipping below $42,000. This move came amid reports on September 24 of renewed crackdowns on the Chinese cryptocurrency industry.<\/p>\n","protected":false},"author":1,"featured_media":50111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1305,133,1734,36],"class_list":["post-50110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-ban","tag-china","tag-peoples-bank-of-china","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"27","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/50110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=50110"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/50110\/revisions"}],"predecessor-version":[{"id":50112,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/50110\/revisions\/50112"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/50111"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=50110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=50110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=50110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}