Chinese regulators joined forces on Friday to implement a blanket ban on cryptocurrencies. According to a Reuters report, ten agencies, including the central bank, financial, securities, and foreign exchange regulators, combined efforts to prohibit all crypto-related activities.
On September 24, Chinese regulators declared an explicit ban on cryptocurrencies and all activities related to them.
The latest effort is helmed by the People’s Bank of China, which has launched a “coordination mechanism” with state agencies to discourage crypto adoption.
Notably, Chinese authorities had already barred financial institutions and payment companies from offering crypto services in May. However, the new prohibition highlights that those restrictions were insufficient to contain the growing influence of digital assets.
Many analysts believe that the newest restrictions are part of China’s broader efforts to prioritize the upcoming digital yuan.
Meanwhile, others like Senator Pat Tommey see it as an attack on economic freedom.
The world’s largest cryptocurrency, Bitcoin, dropped over 9% as news about China’s restrictions emerged in the media. However, the token was able to rebound from the event and as of press time was trading at $42,730, with a 4.42% loss over the past 24 hours.
The development also impacted major crypto exchanges and blockchain-related firms, though some of them managed to recover through the day. Riot Blockchain, Marathon Digital, and Bit Digital tumbled between 2.5% and 5%, while publicly-listed crypto exchange Coinbase Global dropped by a little over 1%.